Category Archives: Equipment Loans

Looking to grow your business but worried about bad credit? Make sure you don’t let setbacks stop you from achieving your goals! In the business world, having access to the right equipment can make all the difference. But what do you do when traditional lenders turn you away due to a less-than-perfect credit score? That’s where online equipment financing loans come in. Read on, and let us guide you through your journey from setbacks to success! Continue reading →

Equipment financing can be the best option when you are planning to enhance your business with the equipment of your choice.  No matter your business size, with this type of financing you can buy any equipment ranging from furniture, tractors, computers, printers, and air conditioners to electronics, coffee vendors, or ovens.

What is Equipment Financing

Equipment financing allows you to buy the much-needed brand-new or second-hand equipment and upgrade or replace existing equipment; without digging into cash reserves or working capital of your business for an outright purchase. Instead, equipment financing, as a loan from a lender, allows you to buy the equipment and then keep making periodic payments on agreed terms, including interest and principal, over several months or years.

Suppose a traditional lender like a bank turns you down due to a low credit score or the small size of your business, in this case, it is best to find other equipment financing options. You even get ownership of the equipment once the loan is paid off.

Advantages of Equipment Financing

1. Allows you to boost your business credit score.
2. A secured, affordable loan option.
3. Buy any equipment to grow your business.
4. Less paperwork and quick processing.
5. Avail tax advantage by depreciating equipment value.

Disadvantage of Equipment Financing

1. Costlier option in the long run.
2. Loan repayment strains business cash flow until paid off.
3. Missing loan installments can damage your personal and/or business credit score.

How Equipment Financing Works

It is best to look out for a financier who can offer the most lucrative loan deal while you hunt to buy equipment for your business. A deal that is manageable for your business’s financial position. The exact terms of an equipment loan depend on various factors, such as the type of equipment purchased and/or the business’s financial constraints.

Suppose you seek equipment financing; it’s better to have a comprehensive, well-written business plan ready. A plan that describes your business activities and outlines its growth potential helps equipment finances assuage their apprehensions about the risks and benefits of your business. Accordingly, the lenders will decide how much money can be released for equipment purchase and whether associated interest or any collateral is needed.

Lenders like Business Capital USA issue equipment financing; that are much more flexible, affordable, and customized to meet your requirements. We provide online equipment finances to desirable candidates after due diligence for up to $2 million. If your business has been in operation for at least one year and generates sales above $15,000 per month, we can make it happen for you.

Things to Know to Get Equipment Finances

You must keep an eye on the right source to apply for an equipment finance loan. The equipment finance industry reported a business of a whopping $1.6 trillion in 2021, meaning the industry is flush with funds and ready to provide finances to anyone deserving. Apply for equipment financing only when it is the right time for a purchase to be made, and not for something you want to buy in the future. You also need to know the qualifying requirements and associated interest rates, among other things.

To qualify for an equipment finance loan, it’s important that: –

1. you run a registered business, be it a sole proprietorship, corporation, trust, public or private limited company, partnership, contractor, etc.
2. your business has been in operation for at least one year and generates gross sales of $15,000 per month.
3. you as a business owner possess a Social Security Number.
4. your Business Tax ID / EIN is valid.

Based on the above, lenders will decide whether to finance the equipment purchase in whole or part. You can apply for equipment financing from lenders like Business Capital USA; by providing the following: –

1. Business address proof
2. Business registration proof
3. Last three months’ bank statement of the business.
4. Details of machinery to be purchased.

You can avail of hassle-free online equipment financing from Business Capital USA within minutes, based on the three ‘S’ principles of ‘Simple,’ ‘Smart,’ and ‘Speed.’ Buy the best equipment for your business today.

It all really comes Down to Who’s Using it

We are choosing to start this article in the way most other resources would end their articles. We would always maintain that irrespective of which investment may be more cost effective in what way, it is ultimately going to be the person’s job role and purpose of the computer they use, that makes the decision more viable.

A laptop is definitely the right option when the user would need to carry the work around, so we shall ignore this part of the discussion which has an obvious answer. The desktop is likely to be the right option when it comes to the need for more performance per dollar and ease of maintenance, when you know that the machine is well intended to be stationary.

Note that we still use “likely” above when in favor of the desktop, and that’s what we shall discuss, to help you make the right decision in your exact situation.

Power Consumption

Laptops tend to consume lesser power at the expense of screen size and some other factors. Firstly, a smaller screen would consume lesser power than a larger screen using similar technology.

Secondly, the cooling system of an aluminum skin laptop need not have a moving fan and provided the laptop is not cooled by a fan that is added power saving when you compare it to the 3-4 fans most desktops would have.
Thirdly, most desktops still tend to have larger hard discs or hard disks with moving parts versus the now more common SSDs in the laptops, making the former more power-hungry.

Fourthly, power efficiency is not that high a priority for CPUs of desktops as it is for those of laptops, which focus on longer battery life.

While a computer may not be a very power-hungry device, when you multiply each figure by a hundred, over a year’s time, the saving could get quite significant and if the work is such that screen size is not a deciding factor, laptops can make a better choice even for fixed applications, but do continue reading the other points to get more clarity.

Ease of Repairs

Should there be a hardware issue, the desktop is without a doubt the easier to repair as its parts are easily accessible and replaceable. The trend of the market of laptops off-late is that they are not even user-maintenance friendly and opening up most laptops voids their warranty. This is getting increasingly common in the industry and the trend seems like it shall last in the long run.

Space Utilization

A laptop definitely takes up much lesser of your real estate space. Further, a user tends to keep a laptop closer to oneself versus a desktop, due to the typically smaller screen size. Now this is a great advantage for offices with space constraints and at times when offices tend to add employee strength in the same facility, this could be a key deciding factor.

Performance

While this battle is slowly getting closer, there is still a performance gap between desktops and the laptops. For the same price, a desktop computer would still outperform a laptop in almost all cases. Exceptions to this rule can exist.

Upgradability

Another area where a desktop excels is at being upgradable. From processors, to Hard Disks, to accommodation multiple hard disks, to getting a graphics card upgrade, a monitor upgrade or even a better pair of keyboard and mouse, the desktop computer is simply the one to choose as a long term investment.

Ergonomics

A lot of scientific evidence favors desktops and certain keyboard-mouse set-ups for being ergonomically ahead of most laptop computers, especially for long use. For example, it is recommended that the screen be at the level of your eyes while the keyboard be easily reachable while your arms are in a position that doesn’t stress your shoulders and trapezius muscles. However, making all this fall in place while still having a straight back, might not be possible while using a laptop. The desktop benefits from having a separate keyboard and mouse, the placement of which can be independent of the placement of the desktop, making the setup flexible enough to manage the correct ergonomics for any user. This can work wonders for your employees and also make their output much better, especially if their job makes them spend long hours on the computer.

Laptop computers can also be set-up with a separate keyboard and a mouse at ideal placements and that can be a great option of a set-up when the user needs a desk-based set-up with a portable option at times.

Conclusion

To wrap up, we would maintain that the right decision for your business can be taken by the business owner keeping the above points in mind. A need for portability, power efficiency and space utilization would make a laptop the winner while almost all other factors make a desktop the winner.

Whether the ideal option is a little beyond the budget or whether the business owner needs funds to purchase new computers, ideal options of business funding could cater to enhance or simplify the purchase process and your business could benefit from making the right investment even if it’s just a tad higher than you may have had in mind.