What is an Equipment Loan?

An equipment loan is a great option if your business requires an equipment purchase but do not have the cash on hand to make the purchase. Equipment loans and equipment leases provide financing options that are extremely flexible and directly correlated to the future success of your business. Leaseback options are superb for businesses that own equitable equipment in order to monetize these assets for the long term.

Who Qualifies for an Equipment Loan?

Equipment loans, in being secured with collateral, have a similar process to normal collateral based loan options. Qualifying for an equipment loan is based on credit score, length of credit history, overall revenue, and the assessed value of the equipment being financed. Generally observed characteristics of qualifying applicants includes, but is not limited to, evidence of profit in one of the last two fiscal years on their financial documents, 600 FICO score, and length of time in business being at least 2 years.

What Types of Businesses Secure Equipment Loans?

Every type of business secures equipment loans. Equipment loan usage ranges from filling an office with furniture to oil rigs for oil companies. Doctors secure equipment loans for their diagnostic imaging machinery as well as general contractors for their cranes and Bobcats. AMP Advance even provides equipment financing to companies working in the agriculture industry, specifically helping small farmers with their equipment needs.

How Much Does Equipment Financing Cost?

Equipment Loan Interest rates are contingent on several determining factors. These factors include credit profile, business revenues, down payment and value assessed of equipment. Typically with an equipment loan, the return on the investment is also due to large tax savings and overall increases in revenue. This is what makes equipment loans to be highly favorable for and a smart investment for approved applicants.Use our free calculator to get an idea of your monthly payment estimate.

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