Do you have an industry or planning to apply for an equipment loan? It all depends on your situation. The following factors will likely come into play when applying for equipment financing. Your credit score – Your down payment amount Your time in business Your business plan (if the lender requires it) Because the equipment acts as collateral to secure the loan, it’s generally easier to qualify for an equipment loan versus a traditional business loan, as the latter may have stricter lending requirements.
Who Needs An Equipment Loan?
The first step is figuring out if your business needs an equipment loan. Looking and figuring out if your business needs an equipment loan can be a difficult process and decision. That’s why the Equipment Lender’s team is here to help you throughout the entire process. Below are the most common industries we’ve seen that have needed an equipment loan:
- Agriculture
- Forestry
- Construction
- Manufacturing
- Mining
- Transportation
- Woodworking
- Restaurant
- Healthcare
If you are in any of the above industries or in a different industry, call us today and we can help you find the equipment loan best suited for your business.
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How Equipment Loans Work
Equipment loans are made by banks or equipment financing companies to fund the purchase of large pieces of equipment. By taking a loan to purchase equipment, a company can preserve cash in the short term by spreading out payments over a period of time. In addition, by using the purchased equipment as collateral, the borrower can get better interest rates because banks view these loans as lower risk. Equipment loans are typically used to purchase equipment that will retain its value.
All You Need To Know About Equipment Loan
Equipment Loan Tips:
We work hard to provide you with the best equipment loan possible. As you’re searching for your options you’ll want to look at different quotes before choosing an equipment loan. You can trust that we will provide you with the best loan. Next, you’ll want to be sure to get the best interest rates, origination fees, and terms for the loan you select. You never want to get a loan that has a bad interest rate. Also, you’ll want to make sure the collateral you are using for the loan is worth at least as much as the loan itself. The most important aspect is ensuring that your business is set up for success.
All You Need To Know About Equipment Loan
What Equipment Needs a Loan?
- Commercial vehicles: Vehicles like semi-trucks, box trucks, and van
- Heavy machinery: Types of machinery like excavators, bulldozers, and cranes
- Medical equipment: Equipment like x-ray machines, MRI machines, and dental chairs
