If you’re considering founding a new business that requires significant equipment, like a restaurant or trucking company, getting started can feel like an uphill battle. Equipment financing can help you when you don’t have the funds on hand to purchase the equipment you need–and you may also not have a lengthy credit history to help you obtain a loan. Here are the major advantages of using equipment financing to help fund your entrepreneurial endeavor.
Equipment Financing Advantages for Equipment-Heavy New Businesses
Equipment financing helps you by:
- Providing 100 percent financing for your business equipment, with no down payment required. The equipment guarantees the loan, acting as collateral. Instead of having to buy with cash, you can keep your working capital for other day-to-day business operational needs (or for expansion, marketing, and other business needs), and still get the equipment you require.
- Cutting the risks of equipment ownership. Equipment financing helps you avoid getting stuck with equipment that may not “pay for itself” as a capital asset in your business.
- Evening out business cash flow with predictable payments. You’ll make repayment arrangements in advance of taking out the loan.
- Letting you get better (or more) equipment that you could without the financing. If you had to pay up-front, without the loan, you would have to start your business more slowly, or at a disadvantage to competitors, who can afford the best equipment or a larger amount of equipment.
- Keeping up with the latest technology. Some lease financing agreements let you replace old or obsolete equipment during the lease. The lender or finance company owns the equipment, so they will be the ones stuck with older equipment they may need to sell or write off. Better them than you.
If you need new business equipment, contact Elevation Financial about equipment financing, today.
