Equipment Financing for Startups and Small Businesses
Secure the equipment you need to start your business or take on new clients. Whether you’re just getting ready to open your doors or you have a major upcoming project, there are many reasons to need new equipment. Use equipment financing today to secure your construction equipment, medical devices or computer supplies to accomplish your projects and grow your business.
Many startups can’t get off the ground without financing for new equipment. These costly items are essential to efficient operation, so be sure you have the necessary capital to secure them. Equipment financing is a great way to start using your equipment from day one. There are many benefits to choosing an equipment loan instead of other small business loans. Explore the terms and benefits of this type of loan before you sign up for one for your next equipment purchase.
Compare terms and conditions for equipment finance options and you’ll quickly find that they are far more competitive than traditional loan options. That’s primarily because financing for equipment is a type of asset-based lending. Basically, the stable value of your equipment backs your loan and reduces the risk of your lender.
This is good news for you since it reduces the cost of your loan. Equipment loans typically have a competitive interest rate and little or no down payment. You can operate the equipment from day one and don’t have to worry about saving up for a costly down payment.
Most small businesses aren’t capable of receiving financing due to their credit score and business history. These two factors are used to restrict financing for most applications. Thankfully, these features aren’t as important as an equipment loan. A good credit score may reduce your interest rate, but most lenders are willing to work with startups that have little or no credit history.
Even if you have the working capital available to invest in costly equipment, it’s sometimes a better option to choose a loan. Financing for your machinery can spread out the cost of these assets and free up working capital for payroll, materials and other costs as you grow your business. Spread out payments over the years to enjoy an affordable monthly or annual rate to own equipment that allows your company to operate efficiently.
Compare equipment financing terms and conditions today to find the best option for your small business. Don’t let a price tag cause you to choose anything less than the best equipment for the job.