| Business Equipment Financing |
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New entrepreneurs often make the mistake of using their own money to buy equipment. Leasing is a much cheaper and easier alternative for financing equipment purchases. Any business with equipment can take advantage of this product.
With equipment as collateral, institutions lend at lower rates (sometimes by 100 to 300 basis points) and longer terms than unsecured financing. A typical equipment loan term extends anywhere from 7 to 10 years (based on the residual value) compared to an unsecured line of credit term of 2 to 5 years. Also, with equipment financing, small business owners can claim depreciation on their taxes. An equipment financing loan gives you the option to choose between a floating and a fixed rate line and does not require line rotation. |