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.
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| 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.
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