How to Get an Equipment Finance for Your Small Business

Running a small business is not an easy task. Once you start a small business, you need to keep working towards its sustenance, scalability and success. This would require you to keep investing money into the business from time to time. It could be to scale the business up, or take up a bigger place, redo the office space or buy more machinery/equipment to increase production. The good news is there are specific loans available for your every business need. One such loan is called the unsecured machinery loan or equipment finance.

While nearly 86 percent* of those who seek finance are successful, only a few small businesses seek equipment finance. If you are one of those few small business owners, who is looking for an equipment loan, read on. 

The equipment could be anything that is used for business purposes. Be it medical devices such as diagnostic imager, Cath labs; electronics such as semiconductors, circuit boards, manufacturing such as machine tools, plastics machinery, or technology-based such as laptops, workstations and others. If you are a restauranteur, a coffee machine or a baking oven is also an equipment. So, avail the equipment loan to take your small business to the next level.

Types of equipment finance

There are three ways you can chose to acquire an equipment through lenders. You can either buy the equipment with the help of an equipment loan or take the machine on lease.

Equipment Lease:

As with certain machinery, it could be an expensive proposition to purchase and maintain, many small business owners choose leasing over buying. This means that you would not have to pay all the money at once, the repayment will be spread over a few months or years. However, the equipment lease payments may or may not be tax-deductible. There could be some tax implications if you get the equipment leased. 

Equipment Purchase Loan:

If you choose to purchase the equipment, you also have an option to apply for loans against machinery in future whenever you require capital. The lender will evaluate the machine at the time of applying and decide the loan and interest amount accordingly.

Equipment Hire Purchase:

Another aspect of machinery loan is hire purchase. In this case, the lender remains the owner of the machine till the entire loan amount of paid off. 

You can choose to either take a machine on lease or apply for equipment finance or hire purchase. 

You can get in touch with lending specialists like Capital Boost and get a deeper understanding of how equipment financing works. At Capital Boost, we carefully analyze your requirement and business need and suggest the best suited loans. Get in touch with us for heavy machinery financing, unsecured machinery loan, or loan against equipment.

*https://www.ausbanking.org.au/wp-content/uploads/2020/02/SME-Lending-in-Australia-2020.pdf

Tagged in: Equipment finance, Equipment loan, Machinery loan, Small business loan,  Hire purchase, Unsecured machinery loan, Equipment finance types, Machines on lease, Equipment lease loan, Loans against machinery, Heavy machinery financing, Loan against equipment

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