If you are starting a business or looking to grow an existing one, understanding equipment financing is essential. With that in mind, in today’s post, we provide a basic definition of equipment financing, as well as some real-life examples of equipment financing.
A Definition of Equipment Financing
Simply put, equipment financing is a type of business financing that provides companies with the capital they need to purchase or borrow hard assets such as tools, machinery, vehicles, and more.
Equipment financing is important because success requires more than brilliant ideas. You also need to have the right tools to implement your vision, and equipment financing allows you to do just that.
For most people the term “equipment financing” conjures up images of heavy machinery of the type used in construction or metallurgy. And while these industries certainly make extensive use of equipment financing, almost any company needs to expand their equipment footprint if they want to grow. For example:
- IT companies purchase servers and computers
- Restaurants require ovens, freezers, and grills
- Even organizations in creative fields such as design turn to equipment financing to buy printers and plotters
- Logistics companies need delivery vehicles to expand their fleet
An Example of Equipment Financing
If you are looking for an example of equipment financing, look no further than SBA 504 loans.
504 loans are a lending program created by the Small Business Association to help American business owners purchase large fixed assets. This includes existing buildings, new facilities, and long-term machinery and equipment
Together with 7(a) loans, 504 loans are the two most popular SBA lending programs, and with good reason. In general, SBA loans feature lower down payments and longer repayment terms compared to traditional bank loans.
On the other hand, some feel that the SBA requirements for how business owners are allowed to use a loan are too stringent. The good news is that at Gellyfish Commercial, we offer a broad range of equipment financing options, from SBA loans to conventional loans.
Get in touch today to talk with an expert about the option that makes sense for you!
Gellyfish Commercial: Equipment Financing and Beyond
Looking for certainty of execution in business financing? Gellyfish Commercial is the answer!
Contact us today by email (email@example.com), telephone (877-800-4493), social media (Facebook, Twitter, LinkedIn), or tap the chat icon on our homepage to schedule a free consultation or to learn more about our financing solutions.