The right machinery and tools are vital for business growth. After all, without equipment, you can’t get the job done. High-quality tools let you deliver excellent results to your customers, and they often speed up work times. That way you can take care of more customers and provide a boost to your revenue.
The key to getting the equipment your business needs is equipment financing. How can this awesome financing option breathe life into new startups and small businesses?
Ways To Put Equipment Financing To Work for Your Business
There are many different types of equipment you need, depending on the industry your company operates in. With access to financing, you can purchase a wide variety of necessary items. Construction equipment includes backhoes, loaders, skid loaders, cranes, compactors and other machinery. Restaurant equipment includes food prep surfaces, ovens, fryers, POS terminals, computer systems and drive-thru systems. Even offices benefit from the right equipment, such as desks, chairs and other furniture, in addition to IT systems, laptops, security cameras and printers/copiers.
All of these business needs are covered by financing for equipment. In fact, most of the main things your company requires to operate fall under equipment loans and leases. Even manufacturing equipment such as production lines and industrial ovens are compatible. How can you choose the right type of financing?
The Advantages of Equipment Leases
One way to finance business equipment is through a lease. When leasing, you don’t actually own the equipment. Instead, a trustworthy lender purchases the equipment and lets you use it in exchange for monthly payments. Leases are a great way for new startups and companies with poor credit to obtain equipment. It’s easy to qualify for this type of financing, even if your credit score isn’t great. Another advantage of leases is that they make it easy to upgrade every few years.
When Long-Term Equipment Loans Are a Great Fit
Equipment loans are similar to vehicle loans. The bank extends you capital so you can purchase the equipment. The amount of the loan doesn’t exceed the value of the equipment, which is used as collateral. You may also need to make a down payment of around 20% of the purchase price. This option saves you money thanks to low interest rates, but you need to have excellent credit and solid company financials.
How To Get Started With Equipment Financing
Find a lender with experience in equipment loans and leases. They can help you weigh the specific circumstances of your business and make an excellent decision. Financing is a great way to boost business growth.