If the equipment you are purchasing isn’t too expensive, you may be able to get a shorter term loan. Learn how you can skip the standard 2 week waiting period and get new or used equipment financing in less than 24 hours. Business equipment financing may allow you to claim additional deductions on your annual tax return.
- Equipment financing, the item you’re interested in acquiring serves as collateral for your loan.
- Therefore, make a concerted effort to improve your credit score and correct any problems in your credit report.
- Something you can control, though, is fixed monthly repayments.
- If your business has a reliable record of sales over a given period, you might still qualify with less than ideal credit.
If you’re borrowing less than $250,000, there are no income statements required, speeding up the process even more. An equipment loan is money lent at interest to your small business so that you can buy the machinery and technology you need to grow or operate more efficiently. Banks offer small-business equipment loans to good customers and businesses that have solid credit.
Equipment Leasing and Finance Association – Equipping Business for Success
Equipment financing options help you finance up to 100% of the new or used equipment you need for your business. Applying for an equipment loan is typically a fast and easy way to finance the purchase of ALL types of equipment—computers, machinery, or whatever else you need. However, as with any other form of financing, there are also a few potential drawbacks to equipment loans. These include restrictive usage terms, high down payment requirements, maintenance liability, and depreciation risk.