Equipment Financing: A Smart Way to Fund Your Business Growth
As a business owner, you know that cash flow is essential to the success of your company. But what do you do when new opportunities arise, and you need additional equipment to match the growth? That's where equipment financing comes in.
What is equipment financing?
Equipment financing is a financing solution that enables businesses to acquire machinery, equipment, or vehicles without paying the full cost upfront. Instead, businesses can spread the cost over a set period, paying it off in smaller, more manageable monthly payments. Small business equipment loans allow them to obtain the equipment they need to grow their operations and increase productivity, without putting a strain on their cash flow.
One of the most significant benefits of equipment financing is that it allows businesses to conserve their working capital, which can then be used for other critical expenses, such as payroll, rent, or inventory. Additionally, equipment loan financing often requires less collateral than other forms of financing, making it an accessible option for businesses with limited assets.
Overall, equipment loans for small business can be an excellent solution for businesses looking to acquire the equipment they need to grow and thrive, while also preserving their financial resources.
Purchase Amount
$20,000 - $350,000
Flexible Terms
Monthly Payments
from 24 - 72 months
Time to Fund
14-30 days
How does equipment financing work?
Equipment financing can be a smart solution for businesses that need to acquire new equipment but don't want to tie up their working capital or bank lines. Here's how business equipment loans work:
1
Determine the Equipment You Need: First, you need to identify the equipment you need to acquire. This can be anything from office equipment to heavy machinery.
2
Choose Your Financing Option: After determining the equipment you need, you can choose between equipment leasing or financing. With leasing, you essentially rent the equipment for a set period of time, while with financing, you borrow money to purchase the equipment outright. Fundshop provides both leasing and financing options to suit your needs.
3
Apply for Financing: Next, you'll need to apply for financing. Fundshop offers a simple, no paperwork application process that takes just a few minutes to complete. You'll need to provide information about your business and the equipment you want to acquire.
4
Get Approved: Once you submit your application, Fundshop's team will review it and provide you with an approval decision within hours. If approved, you'll receive the funds you need to acquire the equipment.
5
Acquire the Equipment: With your financing in hand, you can acquire the equipment you need from the vendor of your choice. Fundshop can also help you locate equipment vendors and negotiate the best possible price.
6
Make Payments: Finally, you'll need to make payments on your equipment financing. Fundshop offers flexible terms up to 84 months, so you can choose the repayment schedule that works best for your business.
Equipment Financing Pros and Cons
When considering equipment financing, it's important to weigh the pros and cons to make an informed decision that aligns with your business goals. So we'll explore the advantages and disadvantages of business equipment loans to help you determine whether it's the right choice for your business.
Cost-effective: Equipment financing allows businesses to acquire necessary equipment without the high upfront costs associated with purchasing outright.
Predictable payments: Financing agreements come with fixed payments over a set period, making cash flow predictable and budgeting easier.
Tax advantages: Equipment financing may offer tax advantages, such as Section 179 deductions or bonus depreciation, which can lower a company's tax liability.
Flexible terms: Financing companies offer a range of term lengths and payment options, allowing businesses to choose an agreement that suits their unique needs.
No collateral required: In some cases, equipment financing may be secured by the equipment itself, meaning businesses don't need to put up additional collateral.
Interest rates: Equipment financing may come with higher interest rates than traditional bank loans, particularly for businesses with poor credit scores.
Possible penalties: If a business fails to meet its payment obligations, it may face penalties and fees, which can add up quickly.
Where to get equipment financing ?
Equipment financing can be obtained from a variety of sources, including banks, credit unions, online lenders, and equipment manufacturers. However, not all lenders offer the same terms and rates, so it's essential to shop around to find the best option for your business. Fundshop offers fast approvals (within hours), an easy no paperwork application process, and hassle-free financing. We also offer flexible terms up to 84 months, used equipment financing, poor FICO financing, and commercial equipment loans ranging from $15,000 to $5 million.
Contact Fundshop today to get started!
We’ll help you apply, get approved, and wire your funds to your account on the same day in most cases. We’re now powering businesses all over the country.
FAQ
What is equipment financing?
Equipment financing is a loan or lease that businesses use to purchase or lease machinery and other equipment. It is a popular alternative to paying upfront for equipment, allowing businesses to spread out the cost over time. With equipment financing, businesses can acquire the tools they need to run their operations smoothly without draining their cash reserves.
Why is equipment financing important?
Equipment financing is important for businesses of all sizes, as it allows them to acquire necessary equipment without a large upfront payment. This can help preserve working capital and maintain cash flow, which is crucial for the success of your business. Additionally, financing can provide tax benefits for businesses. With the right financing plan, businesses can deduct the full cost of the equipment from their taxes in the year of purchase, which can help reduce their tax liability.
How hard is it to get an equipment loan?
Getting an equipment loan can vary in difficulty depending on the lender and the borrower's creditworthiness. At Fundshop, we offer a hassle-free, no paperwork application process, making it easier for businesses to get the financing they need. We specialize in business equipment loans, including those with poor credit or seeking used equipment. Our purchase amounts range from $15,000 to $5 million, and we offer flexible terms up to 84 months to fit a variety of budgets.
