A business only has so much cash-on-hand to spend on overhead, new opportunities, unexpected expenses and other costs.
Equipment Financing is for businesses that use equipment in their day-to-day operations, it can help businesses to keep as much cash in-house as possible.
Obtaining Equipment Financing provides accessible cash flow
Equipment Financing does not exhaust business bank lines of credit while conserving working capital.
Equipment Financing helps businesses hedge against the risk of inflation because placing a large down payment on new equipment or paying for the total cost in full at one time binds up the free cash a business has saved thereby the business pays higher amounts due to inflation.
Equipment Financing allows businesses to make a series of payments over a set period of time, it is the lender whom will be the one who absorbs the devaluation of these payments over the time of the financing term due to inflation.
An Equipment Loan is a type of business loan that allows you to buy new and sometimes used equipment immediately to meet the needs of a business while it makes agreed upon fixed monthly loan payments.
The business owns the equipment outright as soon as the debt from the loan has been paid off.
As the loan is secured by the equipment, it is more easier for a business to apply for and receive approval for the loan than with other forms of business loans. Most Financial Institutions like banks most often lend 80%-100%, then requiring a down payment at the closing of the loan, with the duration of the loan ranging from three to even seven years.
With Equipment Financing there are variable financing periods available which can meet the conditions needed by most businesses.
Small Business Equipment Financing for a small business will involve making a down payment, often set between 10%-30% of the total cost of the equipment.
This initial down payment amount can be covered by pledging assets as collateral or by using cash reserves of the business.
After the down payment, the business will make regular monthly payments, similar to a traditionally financed loan. This covers the remaining part of the loan.
Equipment Financing is known to be extremely flexible; it can be applied to new vehicles and machinery even when these such items are used-pre-owned.
Sometimes a lender grants businesses to provide the inclusion of their auxiliary costs examples being: shipping cost, maintenance cost and also any installation cost in their financing program.
This is greatly useful for startup business endeavors, helping businesses to manage their cash flow more closely.
Equipment Financing generally will allow for businesses of any industry to finance their equipment for terms of up to 84 months.
Businesses owners can receive fixed monthly payments and purchase the form of equipment they require to grow their business.
Some lenders provide 0% down programs for qualifying businesses.
Equipment Financing programs report to credit bureaus thus building the credit of the business.
Since lenders use the equipment as collateral, this allows a business to make equipment purchases of large items.
By using the equipment as the collateral of the loan, this allows a business to qualify for more lower rates than other unsecured working financial options.
This also helps with obtaining higher approval rates for businesses with lower credit.
It is vital for a business to have the right equipment available at the time it is need.
Businesses that are currently renting equipment, can cut their payment cost, by implementing Equipment Financing.
Equipment Commonly Financed
Trucking Equipment:
18 Wheelers-day cabs or sleeper cabs
Trailers-flat bed, reefer, dry vans, dump trailers, goosenecks,
Dualies
Construction Equipment:
Graders
Bull Dozers
Excavators
Skid steers
Loaders
Stump Grinders
Service Trucks
Excavators
Skid Steer Loaders
Backhoes
Dump Trucks
Forestry Equipment
Commercial Fishing Boats
Aviation Equipment
Production Equipment Financing
Warehouse Equipment Financing
Farm Equipment Financing:
Tractors and Harvesters, Vehicles for over-the-road or on-farm use, Hay Balers and Plows
Factory Equipment
Industrial Equipment Financing
Medical Equipment Financing
Veterinary Equipment Financing
The right equipment can make all the difference to a growing business
When it has become necessary for a business to upgrade equipment it is also necessary not to place any strain on cash flow. That’s when Equipment Financing is most needed because Equipment Financing will not hinder cash flow.
It does not matter if its any startup business or any well seasoned and established business which may be considering expansion of current operations. They each will still need the proper equipment to serve the needs of their customers/clients.
Equipment Financing is a form of small to mid-size business loan that is intended to be a financial help to a business purchasing needed equipment and or machinery.
As an expense, lease payments have been known to reduce tax liability, this can be structured by a Tax Professional for the business to qualify as an operating lease under FASB 13 for financial reporting purposes.
Lenders work closely with businesses to construct an individually customized solution that promotes the financial endeavors of each individual business.
Equipment Financing is essentially a rent-to-own plan
Equipment Financing is similar to equipment leasing, the credit provider (Lender) remains the owner of the machinery until such time the business has fully repaid the agreed upon value for the equipment the business has purchased.
The lender may pay the total cost or only a portion of the equipment cost, the borrowing by the business covers the difference.
When pursuing Equipment Finance, a business shall need the invoice from the equipment vendor.
Most lenders have a 24-hour turnaround during the application process
The lender will evaluate the value of any equipment a business plans to finance. If the equipment is new, many lenders will use the sale price as the value for lending purposes.
The main reason to upgrade equipment is when it is no longer adequate to sustain the business’ daily operations.
Equipment Financing can free up additional cash flow found in equipment that a business is spending on currently by renting, thus a business would rather own equipment by purchasing it than renting it.
Equipment Financing is a loan for purchasing needed equipment.
It is a fast, transparent funding process with competitive rates and flexible terms.
This form of financing might be used to purchase medical equipment, trucks, office furniture, even restaurant equipment.
Many times farmers want to purchase the newest farming technologies and farming equipment in order to maintain their farms and keep them running as efficiently and coat effective as possible, a very significant portion of their funds will be used to purchase new equipment and technology.
On the balance sheet of a business, the equipment it has is shown as an asset and is amortizable.
Equipment Financing helps businesses get the equipment they need
Used equipment, also referred to as pre-owned or refurbished equipment, usually proceeds through a multi-step inspection process that ensures everything about the equipment is working and in good condition. Equipment Financing can provide the needed financing for a qualifying business to purchase either new or used equipment.
For Equipment Financing Call Now, Today!
SECA Funding Company +1 (800) 413-5167 Ext: 9
Our dedicated staff of experts can help identify the equipment needs of businesses, because having the proper equipment will improve the efficiency, productivity, and safety of any business.