What to Know About Equipment Financing – Some Ideas for You
Equipment management is mandatory for every business including small businesses. The periodic upgrading and maintenance of the company equipment and tools is the best way of getting an excellent percentage of profit in the business. Instead of buying new equipment and tools, it is suggested to go with the idea of equipment financing.
If you are planning to go with the idea of equipment financing, then Intrepid Finance and Venture is your best option. They are based in Fishers, Indiana, and normally work with logistics or transportation companies. They can help you in your venture of equipment funding. You can visit their website to know more.
How Does Equipment Funding Work?
Some of the business equipment and tools such as restaurant ovens, copy machines, vehicles, etc., are mandatory for some businesses to work properly. The companies that offer equipment banking will offer a loan on these items and you can easily repay the amount in EMIs.
Even though you will get the required amount as the equipment banking from any company, you must give equipment lien to the loan offering company as a surety. This process is just like applying for an auto loan. You will get complete ownership of your equipment when you repay the amount in full.
If you follow the idea of regular payments, then your equipment lien will still be in the picture till you repay the amount. However, if you fail to clear the payments, then you might end up losing possession of the equipment that is claimed by the loan offering company.
Getting Finance is Quite Easier
Gone are the times when an entrepreneur had no one to rely on instead of the loan options available in banks. Some banks and loan offering companies will not prefer offering loans to such entrepreneurs that are still new in their world as they feel that these entrepreneurs are not capable of handling the monthly payments. As a result, many banks would shut their door to such loan applications.
With the help of equipment funding, it has become easier for all big-budget and small-budget entrepreneurs to get a loan for their required machinery. The available time duration to repay the amount might vary based on many factors. However, it is the best option for the entrepreneurs that dream big in their life.
The best part of choosing equipment funding is that there is no need for filling hundreds of forms and taking care of all kinds of other paperwork. No limits are set for money borrowing in this case, and you can get the required amount at agreeable interests.
Terms and Rates of Equipment Banking
- 2.00% to 20.00% – the fixed rate of interests
- 1 to 25 years – the repayment terms
- Funding availability within 2 days
People with low credit scores can also get funding in this case. However, the required credit score here will be decided by any particular loan offering company. You may have to have a clear plan of how you are going to handle your business, and based on your explanation and presentation the loan offering service will decide how to proceed further.