As a business owner, it’s very likely that you’re aware that there’s a wide range of financing options available to you, but understanding some of the more nuanced loan options can often be confusing and overwhelming. To best serve you as a financing partner, part of our job at United Business Funding is to provide the resources to help you navigate your options and take the best route for your business needs.
If you are looking to invest in new equipment, whether it’s a new commercial vehicle, an industrial oven, or even office equipment, you may be eligible for an equipment financing loan. Equipment financing is a bit different than traditional loans, so here’s the breakdown.
What is Equipment Financing?
Often overlooked, equipment loans are powerful options if you need to purchase a large investment piece for your business. These loans can be used for a wide range of equipment types across many different industries. It’s not uncommon for large equipment to be costly, which means that businesses might need to secure additional capital to make the investment, which is where UBF comes in.
What are the Benefits of Equipment Financing?
There are a few reasons that equipment financing stands apart from other loan types, but the main benefits of an equipment loan are the payback schedule and the minimum qualifications.
With equipment loans, the payback schedule is set based on the typical life of the equipment. For instance, if you purchase an industrial stove for your catering business that’s meant to last for 10 years, then the payback schedule will reflect that amount of time. This is a great way to pay back your loan as you use the piece of equipment, ensuring you won’t need a large investment upfront or continue paying the loan back after you’ve moved on to new equipment in the future.
With equipment loans, the equipment itself can act as loan collateral, which helps insulate you and your personal line of credit during the application process. Your credit won’t be as critical to securing the loan because the loan will have built-in collateral attached to it. That being said, the base qualifications for equipment loans with UBF are that you have a credit score of 650 or higher, you deposit a minimum of $300,000 in revenue yearly, and your business must be 2 years or older.
These are just two major benefits that our clients often don’t realize about equipment financing. Now that we’ve piqued your interest, we’ll break down the process a bit more.
The Process of Securing a Loan
If you’re working with United Business Funding, our application process is fairly consistent across the board. You can visit our website to see a deeper dive into what it will look like, but at a high level, you’ll submit an application to let us know what equipment you’re looking to purchase, as well as provide a picture of your business’s current financial standing. Once approved for the loan, you can have the money in a matter of days; we pride ourselves on providing swift and trustworthy service. Part of the approval process will require alignment on a payback schedule, and voila, you’re set!
UBF Continues to be a Trusted Finance Provider
We are not in this business to take advantage of small businesses, but rather to help them thrive! Our team will help make sure you’re getting the best type of financing for your business needs every single time. Reach out to us today or visit our website for a free quote!