Without the proper equipment, a business is almost certainly set up for failure. Equipment Financing is the perfect solution for businesses in need of costly yet vital equipment without having to shell out the full up-front cost.
SBG Funding’s equipment financing solution makes sure your business has the tools and equipment needed to generate, sustain, and grow revenue. Whether you are intending to upgrade your equipment or expand on your current equipment, SBG provides custom tailored funding solutions to help you meet your goals.
Please note: Credit approval, requirements, and actual terms (including actual loan amount and rate), are subject to SBG and its affiliates credit standards and may vary by applicant
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What is equipment financing?
Any tangible asset used in the operation of a business can be considered business equipment. Obtaining business equipment is very vital for any venture that wants to grow. Everything from farm equipment to computers used in business premises can be acquired without paying out the full price up-front.
However, how does equipment financing work? Are you supposed to finance the equipment instead of purchasing it outright? If so, are you supposed to get an equipment lease or loan?
Why use equipment financing
Equipment financing is the use of lease or loan to borrow or purchase hard assets for your business. Businesses usually get equipment financing in these situations.
- You want a pricey equipment but cannot afford to purchase that equipment up front,
- You want to replace your equipment regularly since it has a short lifespan or you need the most up-to-date equipment in the market, or…
- You want a combination of the above.
Equipment loaning vs. leasing
- Equipment loans – This is basically a loan taken out with a specific purpose of buying equipment. The loan is usually secured by the equipment – if you are not in a position to service the loan, the equipment will be collected as collateral. These loans are ideal for business owners who need equipment long-term but cannot afford to buy outright.
- Equipment lease – leasing equipment is a common option if you want to trade out equipment time after time or do not have the capital outlay to cover the down payment needed for a loan. Instead of seeking funds to buy the equipment, you are essentially paying a fee to borrow the equipment. Technically, the leasing company maintains ownership of the equipment; however, lets you use it.
Are you ready to take the next step?
In general, a loan is perfect for equipment which will last a long period while retaining its effectiveness while leasing is ideal for equipment which frequently needs upgrading. If you wish to learn more about equipment financing, feel free to contact us.