Interesting Facts About Equipment Finance Townsville
Product or service -based business, equipment are an essential part of a business to keep the venture operate smoothly. It can cause a serious pinch on the cash flow when you purchase, replace or upgrade the equipment you have but with equipment finance Townsville, you can cover up your financial needs.
There are several forms of equipment financing and there’s always one that fits your business needs. Read this guide to understand more.
What is Equipment Financing?
It is common to many companies for them to improve their cash flow and working capital. It focuses on the purchasing of business equipment. A business applies for a loan to borrow money for the financing of the equipment. Once the debt is paid, the business will have the ownership of the equipment.
What are your options?
There are many financing avenues for small business that they can use to acquire the equipment they needed. There are several factors regarding what fits best for a company.
Here are some of these factors:
Years of business operation
Annual business revenue
Desired repayment terms
Personal credit scores
Business credit scores
And these are some equipment finance Townsville ways for businesses to consider for their equipment needs:
This is fit for a new business that needs equipment for the expansion of their operations. Equipment loans are very useful because you can get up to 100% of the financing. In this loan, the equipment will serve as a collateral for the loan and some lenders require 20% down payment when you apply for a loan.
This is best for known and already established business in which they can borrow up to $1 million for the equipment. This type of loan can also be useful for small business who wants to acquire cash for the purpose of equipment purchasing. The loan is repaid over a set of period of time that is similar to car loan and mortgage.
Business credit card
This type of financing is suitable for business owners who want to get rewards when purchasing small equipment. Among the equipment financing options, the business credit card has the lowest credit card limits with $100,00. The primary advantage of this type of equipment financing is the possibility to earn cash back, points or travel miles for the business.
For a business, whether new or established, it will be efficient to choose the best type of equipment finance Townsville that fits the business to purchase the needed equipment. If you have any concerns and suggestions, you can drop your comments below!