- 600 Summer Street, Stamford, CT 06901
Equipment financing is a type of business loan that allows you to finance the purchase of new or used equipment. Equipment loans can be used to fund up to 100 percent of the purchase price of the equipment. These loans can be repaid with interest over time.
Equipment financing for business equipment is asset-based financing. This means that the equipment is the collateral to the loan. Equipment financing is typically easier to get than business term loans. Equipment loans are great for businesses with poor or average credit scores.
Equipment financing works in the same way as a business term loan. Fixed payments are made over time and you receive funding to purchase new or used equipment. You can borrow up to 100% of an equipment’s value. However, this depends on the equipment type, condition, lender, and your qualifications.
A type of asset financing, business equipment financing, is where the equipment is used to secure the loan. This means that you don’t need to provide additional collateral. You may also be able avoid needing a personal guarantee.
However, you may need to make a down payment between 10% and 25% for the equipment that you finance. The interest rate you will receive is likely to be lower the larger your down payment. Equipment financing rates generally range between 4% and 40% depending on your lender, the qualifications of your business, and the equipment that you are purchasing.
Find the perfect loan for your business with Parkview Advance
Parkview Advance, LLC 600 Summer Street Stamford, CT 06901
