Equipment Financing

Equipment Financing

What kind of business equipment can I finance?

Many business owners hear about equipment financing and think of tractors and backhoes. Yes, construction equipment is totally financeable – but so is a bunch of other stuff.

In fact, there’s an equipment financing option to cover tools and resources for just about every business industry. Big or small, basic or complicated, doohickey or doodad – whatever you need, we’ll help you cover the costs.

It’s pretty easy to qualify and apply for equipment financing.

To get equipment financing, you’ll typically need to be in business at least 12 months, have atleast £50,000 or more in annual revenue.

And don’t worry if you don’t meet all of these requirements – exact qualifications will vary by us and equipment type. The best way to figure out what you qualify for is to fill out our free 15-minute application.

One of the big benefits of equipment financing is that your equipment can also act as your collateral – which means you can secure a loan without risking your personal assets. We will determine how much you can finance by reviewing the type of equipment you’re buying, its lifetime value, and whether it’s new or used. That cool contraption you’re thinking about buying seems a lot cooler when it saves you from shelling out.

Because the collateral is literally part of your loan, it’s often not as difficult to get approved as many business owners think it is. Getting started is easier than following those Ikea instructions: just fill out our application, then compare equipment financing options from us.

How much does equipment financing cost?

Your equipment loan payments are determined by four things: your loan amount, interest rate, term, and collateral. These factors can vary widely across industries and equipment types. That’s why we work with a variety of lenders who specialize in industry-specific small business loans – so we can help you find the best deal.

If math isn’t your thing, you can use our equipment financing calculator to figure out what kind of monthly payments you can afford.

To determine whether equipment financing is getting you some real bang for your buck in the short term, you should weigh the costs of your monthly payment against the benefits your new equipment will bring. Here’s an example: if the tractor equipment you’re financing costs you £600 in monthly payments but enables you to take on an extra £2,300 in monthly orders, then your cash flow increase considerably outweighs your costs and makes the loan worthwhile.

This same concept applies to the man-hours you’ll save by leveraging a machine purchase to automate several hours of invoicing and payment processing, or being able to attract new business because your upgraded sorting equipment lets you offer significantly faster shipping times than your competitors.

To figure out whether you’ll also see a hearty long-term return on investment, consider the longevity of the equipment you’re financing. Equipment that only gives your business a minor lift and may be obsolete in a few years when you pay off your loan may not give you the long-term leg up that you’re looking for – whereas taking out a 4-year loan on equipment that will last upwards of 12 years is probably a sound investment.