Equipment finance, or equipment loans, is a term given to a particular field of lending. It works by allowing a borrower to apply to a lender (either an independent agency or a bank) for a sum of cash to cover the costs of certain expenses, assets and pieces of equipment. There are many different types of equipment financing available and some of the most common include:
- Gym equipment loans – to help gym owners to obtain new equipment and facilities
- Office equipment finance – for new businesses or established ones looking to upgrade
- Farm equipment loans – for farmers and agricultural workers in specific
- Medical equipment finance – for private practices, clinics and specialist doctors or surgeons
These are just a small selection of the types of financing available and although their names might differ; they encompass much of the same services.
These services are typically provided by lenders, whereby a borrower can approach an agency either alone or with the aid of a specialist finance broker and then submit a claim for cash support. The lender will perform a range of background checks and if successful, the borrower will receive the cash requested to put toward the cost of certain assets and equipment.
Although generic loans are available, those mentioned above can be far more beneficial – especially as they can allow the borrower to hone in on the right type for their needs. Doing so can be advantageous, as different lending plans usually include varying terms and conditions. For example, a medical equipment loan can be subjected to lower interest rates when a doctor is applying (due to their low risk borrowing nature).
On the other side of the coin, a loan for new office assets needs to be setup correctly so that you have the best chance of a successful application.