Finimpact

Conclusion

Whether you’re a new venture or established business, used equipment financing can be worthwhile. It may help you obtain the equipment you need to continue operations without the high price point that often comes with new equipment. Before you commit to a used equipment loan, however, shop around and explore your options. Best of luck in your search!

FAQ

Is it hard to get used equipment financing?
Since used equipment financing is secured to the equipment itself, it’s fairly easy to get approved for. It may be an option, even if you have bad credit.
What credit score is needed to finance used equipment?
Each lender has their own credit score criteria for used equipment loans. But a credit score of at least 600 is a common requirement.
How much does equipment financing cost?
Used equipment financing includes fees like interest and origination fees. The percentage of the equipment you decide to finance plus your interest rate and any applicable fees will determine your monthly payment.
What are the typical interest rates on used equipment loans?
Interest rates for used equipment loans vary greatly. However, since used equipment loans are riskier than new equipment loans, lenders tend to charge higher interest rates for them. Your credit score and finances will also play a role the rates you receive
Can small businesses take out used equipment loans?
Used equipment financing is available to all types of businesses, including small businesses, mid-sized businesses, and larger or Fortune 500 ventures. Your unique business will determine which specific loans you qualify for.
Why don’t all lenders offer used equipment financing?
Since used equipment financing poses a greater risk to lenders, it’s not available everywhere. You have to do your research and find lenders who are willing to take on this higher risk and lend to you.

About the Author

Anna Baluch

Anna Baluch

Personal Finance Writer

Freelance copywriter who enjoys writing for large publications as well as startups, small to medium sized businesses.

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