What Types of Equipment can I Finance?
Any type of equipment that is necessary for the operation of your business can be financed. This type of equipment ranges from office furniture to tools.
· Cars, Trucks
Office Furniture & Equipment
· Desks, Seating, Storage
· Fax Machines
Computers & IT Procurement
· Desktop Computers
· Audio/Visual Equipment
Industrial Equipment & Machinery
· Production Line Tools
· Printing Presses
· Factory Automation Systems
· Heavy Construction Tools
· Imaging Systems
· Diagnostic Systems
· Research Equipment
· Dental Equipment
· Surgery Equipment
· Cash Registers
· Point of Sale Systems
· Harvesting Equipment
· Storage Equipment
How much Capital is Available?
Small equipment financing lines can start at as little as a few thousand dollars and can easily exceed $5,000,000 depending on the type of equipment needed, and of course, the credit value of the applicant.
How do I Qualify?
The benefit of equipment financing is that there is a hard asset involved that can be used as a basic form of collateral. If for some reason the loan defaults, the bank still has the equipment itself that it can sell to repay some of the loan.
Beyond the collateral items, the bank will look at your credit score, any collateral you may bring to the table (including real estate or cash) and the financial history of the business.
What type of Interest Rate will I pay?
Equipment financing can tend to run on the higher side of the interest rate scale, with rates starting around 8% and quickly moving as high as 25%.
How Quickly can I get Financed?
The underwriting process for equipment financing can run well over a month. Unlike a traditional loan which only has to consider your credit and repayment requirements, an equipment loan needs to also consider the value and depreciation rate of the items being financed. Unlike real estate, the value of something like a computer can plummet in a very short period of time, leaving the value of the asset at near zero even if there is still money owed against it.
Equipment Financing is a great way to separate the hard capital costs of the business from the soft costs like payroll, marketing, and rent. Most entrepreneurs would like to maintain as much free cash in the bank as possible, so laying out large sums of money for equipment that could just as easily be financed over a longer period of time simply makes sense.