Business Loan

Commercial Equipment Loan: Summary of What Equipment Financing and Leasing Are, and Your Options

Are you trying to get information about equipment financing for your business or office? There are a lot of options out there and a lot of companies that offer the possibilities. How do you know which commercial equipment loan offer is right for you? Are you confident that you’ll get approval for a loan, or should you consider the leasing alternative?

Approximately 80% of US businesses lease at least one piece of equipment. With the high price of equipment, leasing makes better sense for many companies than outright getting a loan and purchasing that equipment. However, there are plus sides to buying and owning the equipment outright as well, and if your business credit is good enough, you may very well want to do just that.

It’s essential first to understand what exactly a commercial loan is. These are loans intended to purchase any business equipment relative to your industry. These can be anything from processing equipment, product development and manufacturing, office printers and copiers, technology and electronics-related equipment, and maybe even some software. Any kind of equipment essential for your company to run – including vehicles – at maximum efficiency and productivity will likely be purchasable with a loan.

Commercial Equipment Loan With Leases

As for leasing, it typically doesn’t require a down payment. This exemption is beneficial for those companies that have little to no available capital. When approved for a lease, you can finance up to 100% of the cost of the piece of equipment itself plus 20% or so of the “soft cost,” which may include delivery charges and taxes. Determine which would be the more affordable option, the “soft costs” and the 100% lease cost, or the down payment of the purchase with a loan, as well as the interest.

Traditional lenders like banks are reluctant to extend a conventional, commercial equipment loan to online businesses. They also think twice about small companies with poor credit or no credit, as such companies are considered “too risky.” Many newer online businesses often experience this reluctance. Small businesses that don’t have the capital to purchase, repair, upgrade, or replace outdated and broken equipment. If you fall under this category, then your best bet is probably leasing.

There are alternative lenders to check out. Online financial institutions and commercial equipment leasing companies are sometimes flexible with their requirements and what they offer.

Where should you begin your search for a commercial equipment loan, leasing, or another offer? Trust Capital Funding is worth examining. You can get a free quote online, apply, and get fast approval.

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