Supplying your business with the proper technology, vehicles, and equipment is key to not only running your day-to-day operations smoothly but can also help your business grow. But as your team grows fast or older equipment breaks down or becomes inefficient, a loan can help you cover the expenses to keep your business moving forward.
It’s why many banks offer equipment financing to help business owners get what they need quickly and affordably. But how exactly does it differ from a traditional business loan?
As the name suggests, equipment financing is a loan that is specifically used to purchase business-related equipment or vehicles. Business owners can use it for just about anything: trucks and construction vehicles, manufacturing equipment, technology and computers. The funds can be used to purchase brand new equipment or they can also go toward repairs.
Benefits of Equipment Financing
Equipment financing is often offered at a fixed rate with predictable monthly payments which makes affording expensive equipment manageable and easier on your monthly cash flow. These loans are also somewhat easy to obtain as the equipment itself serves as the collateral for a loan, allowing businesses without perfect credit to get one. They often have a quick turnaround time so you can get the essential equipment you need as soon as possible.
How to Apply for Equipment Financing
Once you reach out to your local bank, you’ll likely need to present them with paperwork typical of any loan — bank statements, tax returns, credit scores, business licenses, etc. Because this loan is specific to purchasing equipment, you’ll need to provide your bank with a quote for the pieces of equipment you’d like to buy so you can purchase what you need outright. You’ll also likely need to provide a down payment for this type of loan, typically anywhere from 5-20%. If you have any questions about the application process, your local bank will be able you help you.
Are you in need of equipment or vehicle financing? Not only do we offer a variety of loans at competitive rates, but we’ll work with you one-on-one to build a customized solution based on your individual business needs. And if you qualify, we can process your loan request quickly.
Call us today at 866.872.1866 or visit your local USB branch to get started.