If you are looking to purchase new equipment using a loan it is important to prepare your financial documents before submitting an application. Lenders are not only going to look at your businesses credit history, they are also going to want to see your businesses current revenue to ensure that you will be able to repay the loan.
Equipment loans are designed to help business owners purchase new equipment with little to nothing down and affordable monthly payments. The lender will review the business’s credit history and revenue to determine eligibility for the loan. This will also determine the interest rate and the repayment term for the loan.
When purchasing equipment using a business loan the lender holds a lien on the equipment. Failure to repay the loan as promised will result in the lender repossessing the equipment and selling it to cover the borrowed amount, if this is not covered entirely you will be responsible to pay the remaining balance. Once the loan is paid in full the lien is removed and your business has full ownership of the equipment.
Chris Fuller went to the University of South Florida and has worked in the financial sector for over 20 years. He has extensive experience in all aspects of personal and small business lending, from personal loans, equipment finance to cash flow based solutions for small mom and pop businesses, and large corporations.
