Equipment finance describes a loan or lease that is used to obtain business equipment, which can be any tangible asset other than real estate. Equipment financing may be through obtaining a loan to purchase equipment or by leasing equipment.
Use the calcluator tool below to calculate what your monthly payments could look like for budgeting purposes.
Interest rates for equipment loans are usually between 5% and 15%, with fees being around 5% of the purchase price. However, these can vary depending on things like your credit, your business revenue, your down payment, and the type of equipment being purchased.
For one thing, financing equipment is a good idea as it offers immediate access to cash so that you can get your business running. Depending on the lender you choose, you might get a convenient deal and you might not need to provide a down payment. Sometimes you can even do a deferred payment program.