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Equipment Loans

We understand the pivotal role of the right equipment in running your business smoothly and efficiently. We offer tailored equipment loans that empower businesses to acquire, upgrade, or replace essential machinery without causing a strain on their cash flow. Whether you’re in manufacturing, IT, healthcare, or any other industry, our flexible financing solutions are designed to fit your needs. We offer competitive interest rates, flexible repayment terms, and a team of dedicated financial advisors to guide you.

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OVERVIEW

What is an Equipment Loan?

An equipment loan is a type of financing that allows businesses to purchase or lease equipment with the borrowed funds. This type of loan, known as an equipment financing loan, is specifically designed for companies seeking to acquire necessary equipment without the burden of paying the total amount upfront. It allows businesses to spread out the cost over a predetermined period, allowing them to preserve their cash flow and allocate resources to other critical areas of their operations.

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Equipment Financing

Equipment financing refers to a loan to purchase business-related equipment, such as a company vehicle, a cooking grill for a restaurant, or a computer server. Upon the loan’s maturity, the borrower owns the equipment outright. This form of financing aids firms in managing cash flow and often provides tax advantages.

Equipment Leasing

Equipment leasing is a flexible financial arrangement where businesses rent equipment for a specified period instead of purchasing it outright. This option aids in maintaining cash flow and gives businesses access to the latest technology without the commitment of ownership. At the end of the lease term, companies may choose to return, purchase, or upgrade the equipment.

Sale-Leaseback

Sale-leaseback is a financial strategy in which a company sells an owned asset to a financier and then leases it back over a long-term period. This strategy frees up capital tied in assets for immediate use and maintains the company’s operation without disrupting its workflow. It’s an effective way to improve liquidity and manage balance sheets.
Equipment Loans

Is an Equipment Loan Right for Your Business?

There are several factors to consider when deciding if an equipment loan is the right choice for your business. One crucial factor is the type of equipment you need. If you require specialized or expensive equipment with a long lifespan, an equipment loan may be a more sensible option than leasing.

Loan Highlights

Equipment loans cover up to 100% of the equipment cost.

Repayment terms are often matched with the equipment's estimated lifespan.

Interest rates on equipment loans are typically lower than on credit cards.

Collateral for the loan is usually the equipment itself, lowering the risk.

Benefits

Equipment loans enable businesses to stay current with technology without significant upfront costs.

They increase operational efficiency by allowing companies to acquire the necessary equipment.

These loans can improve a company's balance sheet by turning a large capital expenditure into a predictable monthly expense.

They may provide tax advantages as interest on the loan could be tax-deductible.

Challenges

Equipment loans can lead to an overcommitment of cash flow due to regular monthly repayments.

There is a risk of the equipment becoming obsolete before the loan is fully repaid.

Businesses might face difficulties qualifying for the loan without a solid credit history.

In case of default, the lender can repossess the equipment that serves as collateral.