Outfitting Your Business Through Equipment Financing
Equipment is a crucial component in any business venture. Whether your restaurant requires a new stove or your construction company’s trucks need to be replaced, equipment financing or equipment leasing can help make these large purchases more feasible. Your business can acquire the equipment it needs without creating a cash flow issue.
How Can You Purchase Equipment?
Financing equipment is the use of a loan to obtain the tools needed to run a business. The concept is similar to borrowing money to buy a home or car. After paying a down payment, the company receives a lump sum to make an equipment purchase, and it repays the amount borrowed in installments. When the payments are complete, the equipment belongs to the business. Often, the equipment itself serves as collateral for the loan; if the payments cannot be made, ownership will revert to the lender.
This type of procurement might work for your situation in the following circumstances:
- You plan to use the equipment for a long time.
- You want the ability to customize the terms of your loan.
- You need a relatively fuss-free application and quick decision.
Should You Finance or Lease?
Equipment leasing is another form of mitigating the immediate cost of new business gear. In this case, the business pays a usage fee to the owner of the equipment. Although the business does not obtain ownership through this kind of agreement, many vendors or lenders offer an opportunity to purchase it at the end of the lease term.
This type of procurement might work for your situation in these circumstances:
- You operate on a tight budget.
- You need to upgrade your equipment frequently.
- You want an arrangement that is fairly easy to qualify for.
The First Step
Elite Finance Inc. is here to help with your equipment acquisition needs. Whether you need to outfit a brand new business or you want to upgrade outdated tools or furnishings, contact us to get started on your equipment purchase.