What Is an Equipment Loan?
An equipment loan helps businesses purchase equipment needed for operations while spreading the cost over time.
Equipment finance can be used for:
- Machinery
- Trucks
- Excavators
- Medical equipment
- Office equipment
- IT systems
- Manufacturing machinery
- Construction equipment
Main Features of Equipment Finance
Asset-Based Lending
The equipment itself is usually used as security.
Preserve Business Cash Flow
Businesses can keep working capital available instead of paying upfront.
Tax Benefits
Some finance structures may offer tax advantages. Always seek advice from your accountant.
Flexible Structures
Equipment finance can be structured as:
- Chattel Mortgage
- Finance Lease
- Hire Purchase
Terms
Usually between 2 and 7 years.
