The SBA will typically provide 40% of the project cost, with the lender providing 50%, and the borrower covering the remaining 10%. Because CDC 504 loans allow businesses to borrow up to $5.5 million, this is an excellent option for large-scale projects. 504 loans have some of the best benefits of any business loans available, including up to 90% financing and fixed interest rates, the result of which equals savings and improved cash flow for you. However, it can take up to eight weeks to complete the approval process and receive funds, making this a poor option for businesses in need of quick cash. The business equipment financing option is very similar to term business loans, the only difference being it’s specifically for purchasing equipment. Because equipment financing is so advantageous, small business owners can purchase what they need with a low or no down payment, easy repayment terms, and save money with competitive rates.
Those years watching frustrated business owners try to sift through their many options gave her a passion for breaking down complex business topics. She wants to help business owners spend less time agonizing over their businesses so they can spend more time running them. Much like Lendio, SmartBiz is actually a lending marketplace and not a lender.
We invite you to Experience The H.I.L. Financial Difference:
If you’re approved, you’ll be granted a lump-sum of capital to be put towards purchasing the equipment. From there, you’ll make regular payments for the duration of your loan – typically up to 5 years. You may even be able to customize certain terms and conditions to your business’s needs. With National, the entire funding process can be as quick as 3 days or less.
- And more experienced business owners will reach a point when something breaks or becomes outdated or they need new equipment for growth.
- Operating and servicing the equipment are costs that you must consider in calculating the total cost of ownership.
- We offer the e-documentation necessary to complete a finance transaction digitally in minutes.
- Alternatively, startup owners may look to business credit cards or less traditional forms of financing like hard money loans, which are secured by your property.
- Our package will give you access to as little as $5,000 to as much as $1.5 million per approval.
It’s important to note that all of this lender’s programs are equipment leases. With that said, there are programs where at the end of the lease, you can purchase the equipment for $1 if you want to keep it ($1 Buy Out). No matter the industry or type of equipment necessary, National Funding is there to help businesses with at least six months in business get the funding they need most to expand. Generally, your business will need to have been operational for at least two years in order to get approved for a credit equipment. There are many times when a business may need to purchase equipment. The right equipment can not only be necessary for day-to-day operations but can also help a business grow, expand, and improve efficiency.
Construction Loans
Often it is safe to assume that if you need a certain piece of equipment for more than three years, purchasing—through your funds or a loan—is the better option. While both loans and leases offer the opportunity of owning the equipment at some point, loans tend to be less expensive. In many cases, we’re able to provide 100 percent financing with no down payment through an equipment finance agreement or $1 buyout lease. When you apply for financing, we’ll learn about your business needs and the equipment you want to finance and create a customized financing solution. Depending on whether you want to own the equipment or just use it without ownership, a loan, lease, or equipment finance agreement might make the most sense. Business equipment leasing is an excellent option because you won’t have to worry about it depreciating in value.