If you’re a company just starting out, you might need to obtain some very important equipment which will help keep your business running smoothly and which will help you to provide customers with services they require. You might also need to purchase new equipment if your existing equipment has grown outdated, or is no longer functioning at its best. This is a time when you need to consider a business equipment loan, and how to get one under the most favorable terms.
About Business Equipment Loans
This is a special form of financing which is specifically arranged for the purchase of important business equipment. This might be a group of new computers for your employees, or it might be a new pizza oven for your restaurant business. When seeking an equipment loan to cover the cost, you will generally be able to obtain a loan that covers as much as 80% of the total cost, and you would have to supply the remaining 20%.
Secured vs Unsecured Loans
There are two basic types of equipment loans, those being secured and unsecured. In an unsecured equipment loan, you would not have to provide any kind of collateral, because the equipment itself actually serves as surety to the lender. That means they could seize ownership of the equipment in the event that you default on your equipment loan. In a secured loan, you would provide some other asset as collateral to a lender, generally in order to obtain a more favorable interest rate. Either type of loan will get you the important equipment you need, but you’ll have to decide which loan will be most beneficial for your company in its present circumstances.
Need Special Equipment to Help Your Business Grow?
Business growth does sometimes depend on being able to secure vital business equipment which is necessary, and if your company is in that situation, we may be able to help. Contact us at Topfund Capital, so we can discuss how to help you get the equipment you need.