Equipment financing provides capital for buying essential operational gear for your company, offering an excellent way to fund necessary purchases. You pay equipment loans back with scheduled payments that incorporate interest amounts over a set timeframe.

This specific use lending type offers favorable terms and rates for buying supplies, software, furniture, and more. There are many advantages to choosing equipment finance options for your needs.

100% Financing

Lending institutions usually offer the total amount needed to purchase your items. Since this is an asset-based lending type, it involves less risk for the bank. You cannot use the money for any other purpose, so lenders provide you with the precise amount you need.

No Collateral Requirements

Typically, you do not have to provide any collateral to back your lending with this funding type because your purchased items serve as your guarantee. The bank can take possession of the things you buy if you default on your loan. This arrangement is a significant benefit of equipment loans or leases, especially for new businesses that do not have sufficient collateral to offer.

Straightforward Qualification Process

It is simpler to qualify for equipment financing than traditional loans. Because your equipment purchase backs the loan, it is less risky for financial institutions to provide the required money. Companies that do not yet have a business credit history or have poor credit scores can still qualify for this funding. If you make your payments on time, securing this lending type helps build your credit for future purposes.

Quick Funding Timeframe

Financing with a specific loan for company purchases requires minimal paperwork, resulting in a fast application process. Lenders who offer these options have streamlined procedures that enable them to provide you with the necessary funds in as little as a few days. The speed of funding helps your startup get off the ground with the needed machinery and systems. It helps existing organizations remain operational with the right supplies and equipment.

Reasonable Interest Rates

When you finance your business purchases with leases or equipment loans, you receive affordable interest rates. While rates vary, you can generally expect equitable percentage rates, enabling you to secure your bottom line. Your company may also qualify for tax deductions that further save you money.

When you need new equipment for your business, it is essential to acquire the items as soon as possible. Equipment financing gives you the ability to gain access to funds quickly without excessive documentation or time requirements. This lending type ensures you remain operational and continue growing your company.