When your ready to make that large investment back into your company
Covering payroll and overhead expenses are just a few things that require constant cash in your bank account to keep your business running. An equipment loan can be just the tool you need to make that long term investment in your business for new growth, while also preserving the cash in your bank account.
As the name implies, a loan designated for business equipment allows a business owner to purchase new or used equipment with loan terms matched to the useful life of the equipment. A loan secured by equipment rather than the general assets of the business, reduces the risk for the lender and allows the borrower to obtain financing.
Most dealers who sell new equipment will offer some kind of inhouse financing with promotional rates. Unfortunately though, like a new car driven off the lot, the value of that equipment will depreciate quickly. On the other hand, purchasing used equipment that has already depreciated, requires less capital upfront to purchase.
The SBA offers great loan terms of up to 10 years through their 7(a) program which greatly helps businesses get approved for loans that they would otherwise get denied for.
The SBA also has the 504 loan program which can also be used for long term machinery and equipment that are connected with building significant building improvements with terms up to the useful life of the equipment not to exceed 25 years.
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NMLS #2160072 (Click here to access Consumer NMLS)
