If your company needs an equipment to get to the next level and you dont have the capital on hand to purchase it outright, equipment loan can be the right solution for you! With an equipment loan, you can financing everything from computers to cars. How much you can borrow is contingent on the type of equipment you’re buying and whether that equipment is new or used.
Most small business equipment loans are made at fixed interest rates—usually between 8% and 30%—with terms up to 60 months on traditional monthly payment terms.
Good news is that most businesses can qualify for equipment financing due to its collateral nature.
However, how much you qualify and the terms are contingent on the value of the equipment your financing and your business’s financial performance.
If your credit rating is less than perfect you can still qualify, since the equipment acts as collateral.
In fact, equipment lenders are just as concerned with what’s securing their loan as with your borrowing history. So, if you’re planning on investing in a high-value (and value- retaining) piece of equipment with your small business equipment loan, then equipment lenders might be willing to work with you, even if your finances aren’t pristine.