Equipment Financing
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What exactly is Equipment Financing?
Equipment financing is a loan used to buy business-related equipment or machinery, such as restaurant equipment, commercial trucks, or building equipment. These loans have fixed-term installments that include interest and principal.
Many companies use equipment financing to replace, upgrade, or buy new equipment while maintaining cash flow and working capital. Obtaining an equipment loan requires a lender who is ready to finance 80% to 100% of the equipment.
The loan is self-secured, which means that the item of equipment or machinery serves as collateral. As a result, lenders prefer to give lower interest rates with longer terms.
The amount you can borrow and the interest rate will be determined by the value of the equipment you intend to purchase as well as the strength of your credit application. Furthermore, the loan period will not exceed the usable lifetime of the financed equipment.
Loan Amounts
$30,000 to $5,000,000
Loan Terms
1 to 5 Years
Time to Fund
Interest Rate
The procedure for equipment financing and leasing has been simplified.
Entrepreneurs are constantly searching for ways to provide better services to their clients. Investing in the newest and most advanced equipment is one of the best methods to enhance your service. The only issue is that tools and equipment can be very costly. Onkoure Financial Services’ equipment financing program gives company owners a quick and reasonable way to purchase new or used equipment to improve productivity, effectiveness, and customer service.
Whether you run a new restaurant that requires new appliances or a building business that uses large machinery. You can get the equipment NOW with Onkoure Financial Services’ assistance while maintaining that crucial working cash. We provide affordable commercial lending and equipment financing options to make the process of purchasing equipment easy.
Equipment Financing vs. Equipment Leasing
New company owners frequently spend the majority of their capital on equipment while being unaware that leasing is a more affordable option. Some business owners decide to lease rather than purchase because they only need a short-term fix. Others rent the equipment because they lack the funds to purchase it directly.
In the same way that you would hire an apartment, you are renting a piece of machinery when you lease it. This means that you can only use the tools as long as you are making payments on it.
The primary benefit of leasing equipment is that there is no down payment or collateral required. Leasing the equipment, however, might wind up costing more than just buying it outright.
Instead of draining your company’s cash reserves, work with us and let Onkoure Financial Services finance your next piece of machinery. For all industries, we offer equipment leasing and financing alternatives.
With our lease program, you can enjoy the real advantages of your new equipment acquisition while still making low, guaranteed payments.
Consider the following questions:
You should ask yourself these three questions when you determine it’s time to buy business equipment.
- What kind of tools are you going to need?
- How much will it set you back?
- How will you cover the cost of the equipment?
Pros
- Quick clearances
- The equipment serves as valuable security.
- At the conclusion of the loan term, you will own the equipment.
- Allows you to easily upgrade your equipment
- Aids your financial flow
- Section 179 of the IRS allows you to save money on your company tax return.
- You won’t have to wait until you have enough money to buy the tools.
Cons
- Most equipment lending applications will require a quote for the equipment.
- You cannot deduct the entire cost of the equipment if it depreciates.
- Startups are not eligible.