Is Equipment Financing Right for You?
Equipment loans are used to cover the costs of running a business on a daily basis. Financing equipment gives your business the ability to free up working capital for other expenses and can prove invaluable when it comes to expensive tools and technologies that are needed in a short time.
Whether it’s to invest in specialized machinery or vehicles, replacing various devices to keep your business running, equipment loans provide working capital that can make the difference between success and failure.
Pros
- After payments are complete, you own the equipment
- Frees up your cashflow
Cons
- May need a down payment if you have a lower credit score
- Equipment might be seized if payments are missed
The Benefits of Equipment Financing
Equipment loans are relatively easy to get and can come from a variety of sources depending on eligibility, creditworthiness and needs. This is best for businesses in need of new or used equipment with competitive financing rates. These types of loans can be claimed in tax write-offs, saving you hundreds on your taxes.