Business Loan

Small Business Equipment Loans – A Traditional Loan VS Equipment Leasing: What is the Better Option?

No matter how small or large, every business will need some equipment at some point, whether it’s buying new equipment, leasing, upgrading, repairing, or just replacing various equipment. There is no business that is operable without equipment, regardless of the industry. Lenders of all types offer products and services, from small business equipment loans to lines of credit.

If your company needs new equipment, you’ll want to look into these products. Before you get started, you need to understand what equipment loans are and whether there is an alternative solution available to help you afford the equipment you need.

It’s no secret that many newer businesses often have trouble getting approved for loans since they haven’t established any business credit yet. Solutions such as equipment leasing are good alternatives for business owners who can’t get approved in the traditional sense. You can think of an equipment lease as a monthly expense instead of a “debt.” With this method, you would be able to lease 100% of all of the equipment’s costs, including the necessary training and installation fees. Leasing gives businesses more flexibility. Return the piece of equipment at the end of the release period or purchase it. By that point, you will hopefully be in a better position to buy it.

Another benefit of leasing is that it often does not even involve a down payment. This benefit makes it ideal for companies that don’t have much capital to spend. Small business equipment loans aren’t all the same, though. Each lender has its terms, and the down payment varies. If you can afford a down payment of at least 20%, then at least consider looking into the equipment loan option. The items you purchase with the loan are the collateral.

Small Business Equipment Loans from Online Lenders

There are various online lenders to look into, regardless of whether you want to the leasing route or try getting a loan. Some of the online lenders are less strict than traditional banks. Depending on your circumstances and the type of lender, you might not be able to borrow as much as you would like, but every little bit helps. You could also always consider buying refurbished or used equipment as long as it’s better quality than what you already have.

What kind of lender is right for you? Where can you learn more about small business equipment loans and leasing? US Business Funding offers some of the most affordable and flexible solutions. You can get a free quote whenever you are ready to apply for the financing you need.

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