Even the best small businesses in the country can run into unexpected and costly equipment failures. Or, on the other hand, if your small business is growing faster than anticipated and you need to expand, setting up new locations with fresh equipment can get expensive. When your small business needs new equipment, facilities, furniture, and so on, and you cannot wait to save up the cash, an equipment financing loan may be the option for you.
An equipment financing loan can be used to purchase:
- Kitchen appliances
- Tables and chairs
- Lighting fixtures
- Office equipment
- Company automobiles
Almost anything that is required to run your business can be the basis for an equipment financing loan. Due to the fact that you already have a business up and running, there is generally less complications for equipment financing loans, which means less paperwork to think about. Depending on how much money you need to complete your upgrades, repairs, or renovations, the term length of the loan will likely be between 1 and 5 years with payments once or twice a month.
There are two other benefits of equipment financing loans you should consider:
- Credit score: New equipment can be expensive to purchase all at once, such as when you need it after an emergency, but if your business is doing well, you are likely to be able to pay off your loan without stress. This helps build your credit score for even lower interest rates the next time you need a loan for a big purchase.
- Collateral: Unlike a business that is only as good as its owners, equipment has inherent value and function. If you fall back on your payments, the equipment itself can be used as collateral, reducing your risk of losing your personal property.
Thinking that equipment financing loans are the right choice for you and your business? Why not contact our Los Angeles equipment financing specialists at Green Ocean Solutions today? We would be happy to explain the benefits and options available to you, as well as help you apply today if you decide its right for you.