Step 25. Applying For Business Equipment Financing

With equipment financing, the equipment is used as collateral. This means financing can be easier to get. When you have equipment that you’ll own long term, it’s best to look for a financing partner.

Equipment Financing Explained

These can include lenders who specialize in equipment financing, your bank, lenders who will work with the vendor and even alternative lenders. If you want to save money on this financing type, shop around for the lowest cost lender.

  • Best Ways to use Equipment Financing:

    -Financing for new equipment
    -Equipment based business start can use their equipment as collateral

  • Advantages of Equipment Financing:

    -Below average APR
    – Monthly payments don’t change
    – A great way to build your business credit
    – Equipment can be used as collateral

  • Disadvantages of Equipment Financing:

    -Down payment may be a large percentage of loan
    – Must have excellent credit to get good terms
    – Equipment can become outdated before it is ever paid off

Apply For Equipment Financing 

Pay careful attention to recommendations posted on the “Learn More” link before you apply.

To Do List To Complete In This Step

1. Review various lenders and their terms and apply for business funding.

2. Pay careful attention to recommendations posted on the “Learn More” for each lender.

Equipment Financing
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