One very common use of a business loan is to purchase equipment. Whether this is a truck, machinery, a tool, or even software for your business, there are numerous options at hand. A business equipment loan can come from a few sources, which we will cover for you.
Business Term Loan
This is a long term loan, typically 2-5 years, with a monthly payment, and no prepayment penalties. This type of loan offers a lower payment, and is great for equipment purchasing. With higher standards than some other programs, you can expect much lower rates than a short term funding program. Typically a lender will want to see 2 years in business, profitability, full financials, and reasonable debt ratios. This program requires great credit, 650+.
Equipment Financing & Leasing
This is a traditional program to buy equipment. This is best suited for a business owner who can not get dealer approved, whether it be for credit issues, age of equipment, or equipment type. With terms ranging from 2-5 years, and a monthly payment, this is an easier, friendlier way to obtain equipment. Equipment financing & leasing comes with strong tax advantages as well, so this is an important option to consider. A Ballpoint Capital advisor can cover all aspects and programs in this to help determine if this is a good fit for you, and your business. The best rates on this business equipment loan come with 650+ credit.
Short Term Funding
Sometimes, there may be a need to obtain the funding extremely quickly, say for a great deal, or a limited time offering. A short term option would be on average paid back within 12 months, with a fixed cost of capital. This is a great option if the return on investment is quick, and high with the newly added equipment. Our short term funding programs offer extremely substantial discounts on cost if paid back sooner. If you do not qualify for a business term loan, or equipment financing, the relaxed standards of a short term deal can provide the needed boost.
A business equipment loan does not need to be any more complicated than any other type of financing. A Ballpoint Capital advisor can walk you through all the pros and cons of these programs, to find the best fit. Equipment is one of the most beneficial things to finance in a business, and we have options for everyone.
