Financing Options for Equipment
Virtually every business depends on its equipment every day to generate profits. It’s impossible to over-stress the importance of investing in high-quality equipment for your company. How can you obtain the capital needed to purchase things such as heavy machinery or production equipment? Equipment financing can help you buy these business essentials while minimizing the financial burden on your company.
What Industries Need Business Equipment?
Many business owners are surprised by the wide variety of things they can purchase using equipment financing. You’re not limited to things such as manufacturing equipment. Virtually anything your company requires to carry out day-to-day operations is considered business equipment.
For example, transportation and shipping businesses can use equipment loans to expand their fleets or purchase sorting lines. Construction companies can buy large equipment such as excavators, skid loaders, and backhoes, or they can invest in high-quality power tools for their team. Restaurants and coffee shops can use financing to purchase appliances such as stoves, ice-cream machines, industrial fridges, and fryers, or they can take front-of-the-house operations to the 21st century with advanced payment systems, furniture, and digital equipment.
What about hospitals and dental professionals? They’re covered by equipment loans as well. Healthcare practices can invest in digital scanning and diagnostic equipment, advanced treatment equipment and furniture, including comfortable chairs for patient treatment. There is virtually no limit to the types of devices that doctors and dentists can finance, from simple X-ray machines to cutting-edge 3D-imaging equipment.
What Are the Advantages of Equipment Financing?
Choosing to purchase equipment via financing is a great decision. It carries numerous benefits for any company.
First, equipment loans allow you to own the equipment, which gives you maximum flexibility for deciding where, how, and when to use your equipment. In addition, once you pay off your loan, you never have to worry about payments again. Another benefit is that financing offers some of the lowest interest rates around, so you save a lot of money in the long run.
Owning equipment gives you access to valuable collateral that you can use to apply for other types of loans in the future. For example, if you want to build your own corporate headquarters, you can leverage your equipment to qualify for a commercial real estate loan with excellent interest rates.
The application process for equipment loans is relatively straightforward, and you don’t need perfect credit to apply. You don’t need any collateral or personal assets, since the equipment itself acts as collateral for the loan. Depending on your needs, you can opt for fixed or flexible payment options. Even seasonal businesses can arrange a payment schedule that works.
