Equipment Financing Loan
Purchase most types of equipment through a fast and easy method. Equipment financing can help you finance up to 100% of used or new equipment for the business.
Processes as fast as two days
Interest rates from 8% to 30%
Loan terms last around the expected life of your equipment
A maximum loan amount of 100% of equipment value
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Apply
Fill out our form to start the qualification process.
Review
One of our agents will review your application and get you the best rate available.
Approved
Receive working capital for your business in as little as 24 hours.
How Do I Qualify For An Equipment Financing Loan?
Most, if not all, businesses can easily qualify for an equipment financing loan. It's relatively easy and doable online if your business meets the qualifications set by the lender.
The amount you can qualify for, and the interest rate that you would have to pay largely depends on the value of the equipment you want to purchase. Your company's credit scores and financial history are also taken into account. It's a good option too if your credit scores aren't perfect. The equipment itself is the collateral in the loan.
Most businesses who received approval had:
A credit score of at least 630 or more
Annual revenues exceed $130,000
Been doing business for at least two years
Applying for an Equipment Financing Loan
Applying for an equipment financing loan is quickly done through the internet. Also, the possibility of getting approved in the same week is relatively good.
Some documents we require include:
Driver’s License
Voided Business Check
Equipment Quote
Credit Score
Bank Statements
Business Tax Returns
Ready to get the funding your business needs?
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The Basics of an Equipment Financing Loan
Equipment financing makes use of a loan to borrow or purchase hard assets for the business.
Applying for an equipment loan can be your ticket to business growth. It may even multiply your revenue. But how does your small business get the proper funds for that?
We, at Merchant ReFi, take pride in our diverse marketplace. We are all about helping all sorts of business owners fund their own business. Learn about how an equipment financing loan is a solution you need to acquire that hard asset for your business.
Equipment Financing Loan Fundamentals
Every business needs specific equipment to operate properly or to grow. In cases like this, an equipment financing loan can be the appropriate course of action — especially when you lack cash on hand to purchase hard assets upfront. And usually, you work with lenders for financing with an APR ranging 8% to 25% depending on your industry, your credit scores, and the resale value of the needed equipment.
How much you borrow through an equipment loan depends on the type of equipment you require (whether used or new). The equipment itself also serves as the collateral to secure your loan. An equipment financing loan is a self-secured loan.
Also, equipment loans have fixed interest rates, with set term lengths. For the borrower, that means the same payment for every month.
Loans & Terms for an Equipment Financing Loan
Equipment financing loans don’t require a lot of documentation. With an equipment financing loan, you get to purchase the equipment and own it for the long term.
Equipment loan interest rates usually fall between 6-9%. Also, an equipment financing loan gets the best rates and the longest terms. They last as long as the expected life of the equipment. Also, equipment lenders will set a maximum repayment term of 10 years.
Advantages of Equipment Financing Loan
An equipment financing loan has several features that make them preferable for some people, as a source of funds. Some of the benefits you can garner by availing an equipment loan include:
- No additional collateral: the only collateral needed for an equipment loan is the equipment itself. This lowers the downside risk.
- Money for equipment: equipment financing loans let you borrow money specifically to pay for equipment; no need to wait for cash-on-hand to make important purchases.
- Spread the cost of a purchase: equipment financing loans lets you spread your cost, so this type of loan helps solves most business’ cash flow problem brought up by equipment purchases.
- Better business productivity: a new hard asset helps improve your business’ productivity, and even brings growth.
Should You Consider an Equipment Financing Loan?
As implied in the name itself, an equipment financing loan is made for a specific purpose; to procure equipment that you need.
Equipment loans are fairly accessible to a lot of business owners. The collaterals are strong and fixed, and so are the terms and interest rates. This is especially ideal when your business is reliant on expensive equipment to run and be produced efficiently.
If your business is a part of the company above, then an equipment financing loan would be a good option.
How Much Will An Equipment Financing Loan Cost?
An equipment financing loan doesn't require you to pay the entire cost of the equipment upfront. You'll be paying it off via regular installments -- just like a term loan.
This is how you can calculate the real cost of an equipment loan.
Computing Your Equipment Financing Loan
For instance, your business requires a new piece of equipment that costs $25,000.
So, an equipment financing lender offers the cash so that you can purchase that equipment. But the firm charges 15% interest over a 2-year (24 months) term.
Your $25,000 equipment will cost you $29,091.99. Plus, you need to make monthly payments of $1,212.17. The cost of the loan is $4,091.99, with an APR of 15%.
Will the Cost be Worth it?
Deciding whether or not an equipment financing loan is a right option for you and your business, you need to have a look at your business’ current finances. Can you afford to shell out a large amount of money right now, or will buying it later mean lost profits?
Just be mindful enough to sort through your options thoroughly before determining that an equipment loan is the right financing option for you.
What’s In It For You
Your small or even medium-sized business has financial obligations. We recognize that and our merchant advance can help! You can use your advance for anything related to your business — such as real estate, taxes, payroll, and more — and you can get it as soon as you’re approved. Our merchant cash advance company also doesn’t require you to put down any collateral, making the process easier and less stressful for you. Looking for an increase in working capital? Welcome to Merchant ReFi.
Merchant ReFi
Not sure how to find working capital? Merchant ReFi is the answer. Get merchant finance as soon as you’re approved — which is often the same day you apply — and repay your merchant advance easily through small percentages taken out of your company’s credit card transactions or through a fixed ACH debited to your bank account. We’re business lenders who are here to help your business succeed.
