EQUİPMENT FİNANCİNG

 

EQUIPMENT FINANCE

We tried to tell you how you can do your dream job and we will continue. In this blog, we continue to contribute to you by explaining how a business goes, what is required, how much capital you need, and where this capital can be obtained.

You have an established business, you were awarded a contract for a certain period of time. For this job you need to finance the equipment. You don't want to invest all your capital in this fixed-term business. You are right of course. Because when the job is done, the equipment you bought will not be of use for a while, maybe for a long time, and every year it will become idle and useless for anything other than depreciation, and you will have tied up your capital. to this equipment. For this, we will talk about a sector in which such an enterprise has emerged in the world sectors and many related companies have been established today.

Equipment financing, vehicles, dozers, cranes, concrete mixers, etc. in line with the temporary needs of companies. It is a form of financing that meets equipment needs such as In equipment financing, it also gives you the opportunity to take ownership of the vehicle you rent, just like in factoring, by deducting the payments you make at the end of the contract.

Financing equipment for your business may be over your head. Thanks to this system, which also offers monthly payment opportunities, it can provide convenience in calculating your expenses. In this system, you can rent the equipment for up to 12 years. It also offers the opportunity to deduct from taxes by paying the wear and tear of the equipment you rented.

To be able to use equipment financing, you must be in business for one year. Your working capital must be over $51,000 and your credit score must be above 649. These are the prerequisites. If your credit score is low, this problem can be resolved by looking at your cash flow chart. You can determine the cost of this financing. The better options you offer your collateral and term, the more interest and payment plan you get.

EQUIPMENT FINANCE

FEATURES OF EQUIPMENT FINANCE

1. Protects your money: It allows you to use the capital you have for other needs of your company.

2. Easy application: It is a type of financing that is concluded in 24 hours.

3. Special for your company: It offers special payment opportunity for your company.

4. Depreciation: Expenses incurred are tax deductible.

TYPES OF EQUIPMENT FINANCE

A. Business fleet financing

B. Medical equipment financing

C. Restaurant equipment financing

D. Tractor equipment financing

E. Construction equipment financing

ADVANTAGES AND DISADVANTAGES OF EQUIPMENT FINANCE

Advantages:

I. It is a type of financing with a low interest rate.

II. It is the type of financing in which the equipment is completely yours.

III. You can take advantage of tax advantages.

Disadvantages:

I. If; If you have an agreement to receive the equipment, there is a possibility that it will become obsolete.

II. It is a high down payment type of financing.

COMPANIES THAT PROVIDE EQUIPMENT FINANCE

Ondeck: Requires a credit rating of 600 to finance equipment under $50,000. It provides loans up to $250,000.

Credibility Capital: Requires a credit rating of 650 for equipment financing under $50,000. It provides loans up to $500,000.

Funding circle: Requires a credit rating of 660 for equipment financing over $50,000. Provides loans up to $500,000.

We tried to give you information about equipment financing. We hope we could be useful for your company.