Equipment Loan


Equipment Loan

Equipment Loan

An equipment loan is considered to be a type of business loan where you borrow funds to obtain the needed equipment for your business. An equipment loan can be used to finance the equipment of your business that will generate the income. An equipment loan has a minimum loan amount of $10,000 and there is usually no maximum limit. An equipment loan will usually have a fixed interest rate for the term of the loan. An equipment loan is ideal for borrowers with long term equipment needs and who prefer asset ownership and the related tax benefits that go along with an equipment loan.


There can be a few benefits to acquiring an equipment loan. Some of those benefits could include obtaining an equipment loan will allow your business to get the needed equipment without paying an upfront cost. An equipment loan will allow your business to secure less initial cost than if you were making a full cash purchase. Another benefit of an equipment loan is the full cost of the loan is considered to be a deductible from taxable income and making monthly payments also allows your business to budget your money and unexpected expenditures. Lastly, one final benefit of an equipment loan is these types of loans lets businesses upgrade their equipment easier. Since technology changes every few years, your business may want to get rid of old equipment and acquire new equipment. An equipment loan allows your business to make those necessary upgrades.