Small Business Guide to Equipment Financing
As a start-up small business owner, you can’t get going without the necessary equipment. And, down the road, you may need to update or replace it. One way to get your equipment is through an equipment financing loan. There are several reasons why an equipment loan is preferable to a traditional business loan.
Security for an equipment financing loan is the equipment itself. No need to put up your house or other personal/business assets as collateral. If you fail to repay the loan, the equipment will be repossessed.
Less Documentation and Fast Approval
A traditional loan is practically impossible for a startup to qualify for. Even for a thriving business, a traditional lender will require substantial amounts of documentation. Much less paperwork is needed for an equipment loan because the equipment is its own collateral. And, an equipment financing company will approve or deny your loan application very quickly.
Your Equipment will Always be Cutting Edge
If a vital item of equipment malfunctions and needs expensive repairs, an equipment loan enables you to quickly replace it with the latest model. The up-to-date equipment will help you produce more products, serve customers faster, and stay ahead of the competition. An equipment financing option may allow you to trade in the original equipment for the latest model after a set time period.
Saves you Money
An equipment financing loan typically enables you to finance 80 to 100 percent of the equipment cost, often with no down payment. Some equipment loans come with flexible repayment terms to help maximize your cash flow. You might defer your initial loan payment for 90 days and/or opt for payments on a monthly, quarterly or annual basis. Payments on equipment loans may also be tax-deductible.
Choose the Right Equipment Financing Company
Artemis Commercial Capital specializes in equipment financing for all types of equipment. We will ensure that you get exactly the right equipment financing loan for your company. So contact us today to see how we can help you.