Owning and operating a small business is a big job. It requires a large amount of your time and full devotion to keep your business growing. Many small business owners find themselves stuck when the equipment they relied on to operate fails. Finding the funds to replace this equipment can place a huge burden on the small business. Equipment loans help to take away the burden, offering affordable monthly payments to the small business.
What is an Equipment Loan?
Equipment loans are designed to help business owners make important equipment purchases without breaking the bank so to speak. Both traditional banks and specialty lenders offer equipment loans. With a small down payment your business could walk away with new equipment. Interest rates are similar to what you would see in an auto loan, the better your credit rating is, the lower your interest rate will be. Once you close on the loan you will make fixed monthly payments for a set term, allowing you to slowly pay back the loan while utilizing the equipment.
How Can My Business Get an Equipment Loan
Turning to your business bank is a great place to start when looking for a business loan. With a good relationship with your bank you can easily move forward with the financing process. You can also turn to the financing company which works with the Equipment supplier, this could make for a faster financing and purchase process.
No price is set in stone. Just as you would negotiate the price of a car and terms of an auto loan, you want to do so when purchasing equipment for your business. Making negotiations could save your business thousands in the long run. If the equipment supplier and the financing company does not want to work with you, there is always another that will give you what you need.
Chris Fuller went to the University of South Florida and has worked in the financial sector for over 20 years. He has extensive experience in all aspects of personal and small business lending, from personal loans, equipment finance to cash flow based solutions for small mom and pop businesses, and large corporations.