Finimpact

Final Word

Business equipment financing is a way for companies to borrow money to buy expensive equipment to start or expand their operations. These loans can be easier to qualify for than many other types of loans and offer large amounts of funding over long terms, so companies in need of expensive equipment may find them appealing.

 

FAQ

Are equipment loans hard to get approved for?
No, equipment loans are not typically hard to get approved for. The equipment you buy secures the loan, reducing the lender’s risk.
How do I know if equipment financing is right for my business?
Equipment financing can be a good choice for businesses that require large amounts of capital and large investment in machinery or over equipment. Financing can spread these costs out over the long term.
Can I get funding for new equipment?
Yes, there are many lenders that are willing to help companies buy new equipment.
What are equipment financing rates?
Equipment financing rates can vary widely depending on the term of the loan, your company’s finances, and your company’s credit. Common rates range from 5% to 20% or more.
Can I get equipment financing with bad credit?

About the Authors

TJ Porter

Written by: TJ Porter

Personal Finance Writer

I have in-depth experience in reviewing financial products such as savings accounts, credit cards, and brokerages, writing how-tos, and answering financial questions both simple and complicated.

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Kal Salem

Reviewed by: Kal Salem

CPA, PMP and Finance Consultant

A CPA and finance professional working with small businesses to educate owners and grow alongside their businesses. He holds a Masters in Accounting and a BS in Supply Chain Management. Owner at Salem CPA Services LLC.

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Somer G. Anderson

Fact checked by: Somer G. Anderson Ph.D., CPA

Accounting and Finance Professor

Somer G. Anderson has been working in the Accounting and Finance industries for over 20 years as a financial statement auditor, a finance manager in a large healthcare organization, and a Finance and Accounting professor at Maryville University.

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