Home » FINANCE » What Are Equipment Loans And What’s So Good About Them?

When it comes to finance and loans it can become slightly confusing understanding all the different options available and the wide variety of loans on offer. From commercial loans to home loans and superannuation funding to mezzanine funding it is a veritable minefield for the uninitiated. Whoever you might be dealing with you will want to clue yourself up a little before making contact so that you can feel confident and more informed. So what exactly is an equipment loan? Surely you just need to get a business loan? An equipment loan is specifically catered towards acquiring the equipment your business needs to either replace what you currently have or to attain more or upgraded items as your business expands. So what is it that makes them so beneficial?

Equipment Upgrade

Sometimes the quality of the equipment you have available to use could be holding your business back. Everything else could be running smoothly and you are ready to grow your business but you really need to expand the quantity or quality of your apparatus. Perhaps you have had an unforeseen failure of a major piece of machinery which is key to your production but is not covered by warranty and is very expensive to replace. Whatever your reasoning for wanting new and improved equipment by getting a loan specifically designed for this need you will keep your business in good shape and potentially increase your productivity and profitability.

Cost Effective

Cost EffectiveThese type of loans are often available without the need to make any sort of down payment. This can make a big difference to a business particularly a smaller one. Sometimes they can supply you with 100% of the finance you require and in addition to this they can be flexible. This is one of the key factors with an equipment loan as the lender is aiming it to be as helpful to that specific requirement as possible.

Paperwork

Unlike a standard business loan, equipment loans are often much easier to acquire. You will need an extensive amount of paperwork when applying for a business loan and your company may well have to have been successful for a number of years before approval is granted. Therefore if you are a new business you will struggle to get a business loan but getting equipment finance normally tends to be simpler.

Fast Response

Fast ResponseSome loans can take a long period of time to be approved or denied. This period of time could well be time wasted if it comes back that you have not been allowed to receive the loan you need. This time could have been devoted to looking elsewhere or simply running the business. If you know where you stand immediately you will be able to react sooner and lenders such as All Finance Options aim to give you a response as quickly as possible so you can get back to the important matter of running your company.