Equipment Financing: Tips on Getting Equipment for Your New Businessby AllFi Solutions Financing
From choosing a suitable name for your company to deciding which services to offer, starting your business can be devastating. Fortunately, getting the equipment you need to successfully run your business doesn’t add stress. Everything from computers and desks for an office to manufacturing equipment and heavy machinery can be easily acquired without paying out of your business’ own pocket.
But how does equipment financing work? What are the ways to finance equipment? What does the equipment financing process involve? Keep reading to find out!
Why Use Equipment Financing?
It is used to purchase or lend valuable physical assets for your business. Businesses generally require equipment financing in both or any of these situations.
- When you can’t afford or don’t want to purchase equipment up-front
- When you need to replace your equipment to get updated with the technology
Ways to Finance Equipment for Your New Business
There are broadly two ways to finance equipment through equipment loans and equipment lease.
- Equipment Loans - It is a loan taken out with the purpose of buying equipment. The equipment is generally used as collateral. In an equipment loan arrangement, the lending institute or lender will pay 80% to 90% of the cost, and you will be responsible to cover the other 10% to 20%.
- Equipment Lease - If you don’t have the capital to cover the down payment or need to trade out equipment frequently, renting equipment is the best option. While lease arrangements may vary depending upon your business needs, you will pay a fee to borrow the equipment. In some lease arrangements, you even have the opportunity to buy the equipment at the closing of the lending period.
Understand Equipment Financing Process
With a good understanding of the financing process, you will be able to get your business equipment in these four easy steps.
- The first step to get equipment is to apply for equipment financing by filling the online application form, talking to your consultant, and providing any necessary financial documents.
- After applying, the next step is to get approval. Your financing consultant can get you fast approval by reviewing your application.
- Once you have been approved, it's time to sign the contract, most likely electronically. Moreover, the arrangements will be made for equipment delivery/pick-up.
- Finally, you will be expected to provide a confirmation of having received the appropriate equipment.
So, what are you waiting for? Start looking for the best company that provides equipment finance in Brooklyn to help your business succeed.
Created on Jan 11th 2019 04:37. Viewed 400 times.
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