One of the greatest developments for small businesses is equipment financing. If your business needs equipment, these business loan options have been created to specifically help businesses that need to buy machinery and equipment in order to operate their business.
From those loans, you’re able to purchase everything from office furniture to medical equipment, farm machinery and commercial ovens.
Business loans allow small businesses to make more manageable payments while their purchase is being used to increase revenue in its own way.
That being said, the world of equipment financing has changed a lot over the years. So to get an understanding of what it is and what are the best options are for you, read on.
As mentioned above, equipment financing in essence is getting a loan to cover the purchase of an equipment that is going to be used for business purposes. The size of that loan will depend on the value of the equipment you’re thinking of getting.
What’s also nice about these loans is that the equipment usually serves as collateral for those loans. Thus the lender can seize the equipment if you fail to repay the loan instead of suffering massive financial loss.
Some other things to keep in mind about equipment financing in a general sense are:
With everything, there are advantages and disadvantages of these options. Being aware of them will help you determine whether this option is the best for you.
Many vendors will be offering leasing as a means of financing.
Equipment leasing is nice as a way of reducing costs and maximizing an investment as well. After all, certain pieces of equipment become less valuable and productive as they get older. As such, leasing the equipment could be a smart move.
Another option that financing companies offer is buying equipment at the current market value.
Leasing is usually the most costly compared to buying if you’re going to be using the equipment long-term. Even so, leasing is the ideal option if you plan to use the equipment for 36 months or less. If you plan to use it for more, it’s better to buy.
Regardless of the benefits for your business, it’s important to take your time with equipment financing. Look at the needs of your small business as well as your goals. Also look into how trustworthy a lender is by looking at user experiences and other factors too.
Get started leasing or financing the equipment you need. Contact Yellowhead Equipment Finance today to get started. We’ll help you identify your eligibility, work with you to understand your options, and work with appropriate lenders to get the best solutions for your financing needs.