Use the Business Equipment Loan Calculator to Calculate the Loan Terms and Interest Rate of Your Required Loan Amount. Get an estimate of your monthly payments and repayments on equipment loans and apply for funding today. Compare, Choose, and Save.
How to Use the Equipment Financing Calculator?
The equipment loan calculator is a simple tool that can be used to calculate your costs, payments, and terms.
It's very simple to change the parameters in the calculator, and you are free to use different inputs to see how that impacts your payments and costs.
The following are the steps to take to estimate your payment for equipment financing with a business equipment financing calculator:
- Step 1: Enter the cost of the equipment.
- Step 2: Enter the interest rate. Rates vary depending on qualifications.
- Step 3: Enter the length of financing in months. Your terms will depend on qualifications.
Once you have finished the inputs, the calculator will automatically calculate your estimated monthly payments.
The calculator does not consider any down payment or origination fees that may or may not be charged and must also be considered before coming to any conclusions about affordability, as these items are not factored into the equipment loan calculator results or estimated monthly payment.
The equipment loan calculator is only an estimate of the terms of equipment loans or leases for purchases. Rely on the disclosure Advancepoint Capital provides when making an offer for decisions on financing.
Business Equipment Loan Calculator: Definitions & Terms
The equipment loan calculator for heavy or commercial equipment has the following inputs to calculate payments:
For equipment loans, the loan amount will depend on the financed price, not the purchase price, as some offers require a down payment. This will depend on the offer you are given based on your qualifications.
Equipment loans are based on interest rates, equipment leases are based on factor rates. There’s a difference, so make sure you receive the proper disclosures about the cost of financing when making any decision.
An interest rate is the most common term used to describe the cost of borrowing money. The interest rate is the amount charged by a lender against the principal loan, and it’s expressed as a percentage that doe not include other fees associated with the financing.
Remember that an APR includes the interest rate and additional costs and fees associated with the financing over a 12-month period.
The length of time of repayment on equipment financing can range from 2 years to 7 years, depending on many factors such as your credit, the type of equipment you're looking to purchase, and the documentation you provide.
The calculator automatically calculates your estimated monthly payment by considering the interest rate, loan amount, and repayment length.
How To Get an Equipment Loan: What are the Qualifications?
Eligibility requirements will depend on the type of equipment, credit requirements, and documentation your business can provide to show the ability to repay. Also, any potential down payment can impact qualifications and terms.
A 1-page application will need to be filled out providing business and personal information about the business owner. Business information will include the business legal name, dba, business address, business phone number, business email, time in business under your ownership, time at the current location, federal employer identification number, and website (if you have one). For business owners' personal information, you can expect to be asked owner's full name, percentage of ownership, home address, home number, cell phone, personal email address, date of birth, and social security number.
The equipment description is very important as that's collateral for financing. Usually, an invoice or the for-sale listing will have the necessary information for equipment financing underwriters to evaluate. The description should include the equipment's name, make and model, age, mileage (if this applies), and what dealer you are purchasing the equipment from. We do not provide financing for person-to-person sales through equipment financing, but we have many alternatives for purchasing equipment if it is person-to-person. Offers will vary depending on the equipment description.
We offer a variety of equipment financing depending on the business owner's credit. All credit is considered but obviously better the credit, the better the terms. We have both prime and subprime equipment financing options.
Time in Business
The longer you are in business, the less likely defaults will impact the offer you are provided.
Low documentation requirements for equipment financing. The good news is. Usually, you only need to provide business bank statements and an equipment purchase order (with a description) to get pre-approved.
Evaluating Loan Terms of Equipment Financing
The following are the most important items to consider in equipment financing
- Interest Rate-The interest is the amount a lender charges a borrower and is a percentage of the principal—the amount loaned.
- Factor Rate (if a lease)- A factor rate (or money factor) expresses the charge by decimal that the funder charges on the loan. This is not an interest rate.
- Annual Percentage Rate (APR) -Total interest and total cost of financing over a 12-month period.
- Length of time of repayment- The duration in months or years to repay the equipment.
- Monthly Payment-Payments are expressed monthly for most Equipment loans or leases.
- Down Payment - The amount of money to pay upfront for equipment purchases.
- Other Fees-Any fees you pay upfront or in the financing that would be calculated in the annual interest rate.
*Always ask if you own the equipment at the end of the funding and if you are subject to any additional costs.
How Advancepoint Helps You Secure Financing?
Since Advancepoint is a marketplace, we can find the right financing company with the best terms for the equipment you're trying to purchase.
Equipment financing companies are not equal and specialized; we know where to look for your specific financing needs. We also offer various loan products through our marketplace, each with features and benefits. Our business finance specialists are available to work with your specific equipment purchase requirement and find the best business finance product for your business.