Interested in equipment financing, but not sure if you qualify? Concerned about the costs and interest rates of equipment lenders? Wondering what it is exactly in the first place? We can help. Equipment financing is a great way to afford necessary hard assets in a way that makes sense for your company financially.
A hard asset is typically a piece of equipment necessary for performing jobs, like a company trailer or a truck for a contractor. These expenses can be tough to cover up front for smaller business. For a wide variety of reasons, equipment financing can be the best option for your situation. If companies lose equipment to an accident, equipment financing can also be a quick and easy solution.
Loaning and Leasing
Equipment financing comes in two forms, one being loaning and the other leasing. If you’re confused, don’t worry – that’s where we come in. The proper choice is dependent upon the type of equipment as well as the company.
A loan is not a great way to save money in the extended long-term, but may be an appropriate action depending upon the cost per month and the time you’ll end up needing the equipment for. You’re most likely going to want to lease if you want to save money on the long term and end up owning the equipment.
Lease arrangements are a little more versatile in terms of the arrangements and may be a better option for some companies. You’ll find you can more often replace your rented equipment with another tool, or something to that effect with a lease.
Of course, there are more particulars involved in each of the options, and these can vary with every company as well. If you need assistance, remember that Global Finance Group will custom tailor each financing project to our customer’s specific needs.
We intend on building long-term relationships with our customers to help diversify their financing options and bring value to their endeavors. If you’d like to learn more from us personally, contact us today.