What is an equipment financing loan?

Equipment financing is a type of small-business loan designed specifically for the purchase of machinery and equipment essential to running your business. You can use an equipment loan to purchase anything from office furniture and medical equipment to farm machinery or commercial ovens.

Which alternative lender is best for equipment?

For these reasons, Crest Capital is our pick for the best alternative lender for equipment financing.

Is it hard to finance equipment?

It can be difficult to meet the equipment financing standards of a traditional bank when you have bad credit. Because these lenders may have less strict requirements, like a lower minimum credit score, they may offer less competitive rates and terms than traditional lenders.

How long can you finance heavy equipment?

Most equipment loans last between three to seven years, with some lasting as long as 10. In most cases, you’ll be expected to make a down payment of somewhere around 15\% of the cost of the equipment. Relative to leases, loans usually have better rates but cover a smaller percentage of the total costs.

Do banks do equipment loans?

Many banks, credit unions and online lenders offer equipment loans you could use to obtain computers, office furniture, machinery, vehicles and more.

Is financing equipment a good idea?

Why you should consider equipment financing A business equipment loan can help you quickly obtain working capital to buy or lease the items you need for your business. You’ll be able to manage your cash flow seamlessly, as this financing will allow you to spread out your payments over a longer period of time.

Can you finance heavy equipment with bad credit?

Equipment financing for those with bad credit can be a challenge to obtain, but lease and loan options do exist. Borrowers can work with a cosigner or make a larger down payment on an equipment lease or loan to improve their chances of financing approval.

Who does bobcat use for financing?

The collaboration provides Doosan Bobcat customers access to competitive consumer financing options through the company’s network of more than 500 Bobcat dealer locations across the United States. “We partnered with Synchrony for its financial expertise and quality customer experience.

What credit score is needed for heavy equipment?

620
To qualify for heavy equipment financing, you’ll want to have a credit score of at least 620, preferably higher.

What are equipment financing rates?

Overall, equipment financing rates typically range from 4\% to 40\%, based on the lender, your business’s qualifications, and the equipment you’re purchasing. Repayment terms on equipment financing are usually five to six years, although some lenders may offer longer terms, up to 10 years.