It is not uncommon to find novel ways to expand your business. While some of us rely on conventional financing methods, others prefer to go for techniques that are in line with our needs says Ian Mausner. Take equipment financing, for instance. Since it helps in providing the much-needed resources to any business or organization, it helps in growing the business manifold. All you need to do is explore the available equipment finance options and choose a program that works best for you.
Listed below are some of the things you should know about equipment financing before you choose this program
● What is Equipment Financing?
For the uninitiated, equipment financing is a modern financing method that provides financial assistance for purchasing equipment and tools for your business. These tools can be anything from work furniture, medical equipment, and heavy-duty machinery says Ian Mausner. You need to start by assessing your needs, gathering information about the procedure, and you are good to go. As long as you follow the steps, you do not need to worry about anything else.
● Eligibility criteria for this program
Before you are ready to opt for equipment financing, you need to determine the eligibility criteria for this program. Again, depending on your application and the tools you need financing for, you may need to meet certain requirements before you can get approval on your application. According to Ian Mausner, in most cases, you need to have been in business for at least a year, have a credit score of 650 or more, and annual revenue of $50,000 or more.
● Repayment period or term of the program
When you have all the information you need about equipment financing. You need to know the term or the duration of the program. Well, it depends on the financing agency and the type of your business. Generally, most equipment financing loans have a duration or repayment period of 3-10 years if not more. However, if you wish to apply for SBA CDC/504 loans. You might be eligible for a repayment period of 10-25 years. Make sure you focus on all the details before you move ahead.
● Benefits of equipment financing
Finally, you need to know the benefits of equipment financing over other forms of methods. Since equipment financing offers you assistance for procuring machinery and tools, it is likely to offer better results. Ian Mausner says that it means that not only will you be able to get faster approvals on these loans. But you will be able to select a plan that is in line with your needs. Make sure you follow all the steps involved in the procedure before you file an application. And contact the designated agencies or professionals.
If you wish to know more about the equipment financing program, you should contact the concerned agencies on the web. You can also consult with business experts or financial advisors to know more in detail about the financing.