Equipment Loan: When Do You Need One and How to Get It?

Business Expansion

Jacques Famy Jr
Review By Todd Millman

You need an equipment loan when your business is expanding or:

  • You are phasing out the older technology
  • You are remodeling your business to serve your customers better
  • You want to add new product lines to the existing one

With an equipment loan, you can make purchases of equipment such as semi-trucks, farm equipment, manufacturing equipment, 3D commercial printers, construction vehicles, computer servers, and restaurant financing.

Such a loan allows you to borrow the amount required to purchase equipment you can pay back over the loan term. Once the loan is approved, you can borrow a specific amount based on the equipment's worth.

In an equipment loan, the equipment is the collateral against the amount you borrow. It makes it somewhat easy to qualify for this loan. Like other loans, you will have to pay interest on the loan that you have taken.

When Do You Need An Equipment Loan?

Many industries need one to fund the purchase of their equipment. Some of them are:

1. Farming & Food Processing

This industry is the very pillar of the economy, and they need equipment loans to purchase the necessary machines. You can apply for loans anytime you want equipment like harvesters, irrigation equipment, tractors, etc. There are restaurant financing options as well.

2. Construction & Renovation

The rise in housing demand has led to the offtake of equipment loans for your construction company. The loans are required for highway and street construction equipment, excavation equipment, concrete and asphalt, bridge, and tunnel construction, etc.

3. Energy Distribution

These companies benefit from small businesses funding those that are in electricity distribution. The needs may vary from offshore drills to solar power distribution etc. No matter whether you are delivering energy or are in fuel extraction. If you want to manage your business with the latest equipment, these loans can help you.

4. Hospitals and Clinics

Then the healthcare industry needs the latest equipment to render the best service to their customers. Whether you are a pharma maker who wants manufacturing equipment or a hospital who wants new X-ray machines, you can get it with a business equipment loan from us.

5. Transportation

If you are in this industry, you may need these loans for financing trucks, mini-bus, cars, or any other vehicle of similar nature. As the competition grows, you need to buy new vehicles or maintain the older one to transport people and the goods. These businesses need to purchase and maintain vehicles to render better services, and with an equipment loan, you can get them quickly.

How Can You Get The Loan You Need?

Getting the loan usually follows simple steps:

  • Application Form: You’ll have to fill out the one-page form, which will ask you to provide details for the loan amount that you need, your monthly gross sales, years that you have spent in the business, details of the company, and personal information as well.
  • Documents: You must provide your credit score, tax returns, and bank statements.
  • Get Funds: Once your restaurant equipment loan, for instance, is approved, you will get funds (read) in your business bank account. It should not take more than a day!
  • Repayment: Equipment loan usually has a repayment term of the anticipated service life of the equipment.

Wrapping Up

Thus, with the help of an equipment loan or (a small business loan for a restaurant) you can take your business to new heights. With AdvancePoint Capital, you can get the loan within 4-6 hours.

Jacques Famy Jr

Small Business Loan Calculators

Calculate your financing costs using our nifty calculators now.