Beginner’s Guide to Equipment Financing for Businesses

beginners guide to equipment financing for businesses

It takes a certain amount of equipment to keep your business running at its full potential. Whether you need computers, office furniture, vehicles, machinery, or any other type of equipment to grow and run your business, you’re going to need some cash to buy these items.

But what if you don’t have the funds to buy everything you need to keep your business running smoothly? Plenty of small business owners face this very dilemma every single day.

Luckily, there are alternative business capital options available that allow business owners to get all the equipment they need, all through equipment financing.

Business Equipment Loans Are Fast and Easy

A business equipment loan can be just what you need to finance your purchases without having to put a halt on your operations. Your eligibility to be financed is based on the strength of your business, rather than the exact equipment you need. You can essentially fund your business in as little as 48 hours, making it the ideal plan for purchasing equipment you need to buy or repair right away.

How Does Equipment Financing For Businesses Work?

With equipment financing, the equipment itself is considered to be the collateral which means you don’t have to pledge your own collateral in order to secure the loan. You’ll be provided with a lump sum of money to pay for the equipment, which you then promise to pay back in addition to a set interest rate. This fixed-term length means your monthly payments will always be the same.

The length of the loan term will depend on the type of equipment you need, how much it costs, and its expected lifespan. With equipment financing, you own the equipment once you’ve paid off your loan. Compare this to equipment leasing, in which you do not own the equipment after the term has expired.

With equipment financing for businesses, you’ll never have to pay the full cost of the equipment up front. Instead, you can spread out the cost of the equipment over a certain period of time, making payments much more manageable.

Qualifying for Equipment Financing is Simple!

Just about any business can qualify for equipment financing. You don’t have to have perfect credit, nor any collateral. The application process is quick and easy, and approval is typically given within 1 – 2 business days.

Within a matter of 48 hours, you can have access to the funds you need to buy the necessary equipment to keep your business in operation.

The need to keep up with adding, replacing and repairing your equipment can get really expensive. At Credibly, our business funding solutions give you the ability to buy the equipment you need with payback options you can afford. Apply today to find out just how easy it is.