Equipment Financing is essentially a term business loan used to purchase equipment. Since the equipment is usually costly, Equipment Financing allows small businesses to access higher amounts by using the equipment as collateral. Thus, the borrowing amount is directly based on the equipment’s price. The terms are also based on how long the business expects to use the equipment.
Thanks to the collateral, Reachout Capital can offer lower interest rates for businesses with subpar credit. This form of financing gives businesses up to 100% of the cash needed to buy equipment, at a lower rate than some other forms of borrowing, such as unsecured business credit lines, invoice factoring, or a merchant cash advance.
The repayment structure is the same as a Business Term Loan. In most cases, you make fixed monthly payments (plus interest) over a set term. Interest rates start at 5%, with terms of up to five years. You can borrow up to $5 million, and the minimum credit score is 600.
Equipment Financing can be used to purchase many types of equipment, including
Since the equipment is being used as collateral, we will need complete information about the equipment to determine its current value. This information includes the purchase price, age, seller, vin or serial numbers, and the company that makes the equipment.