EQUIPMENT LOAN

When a business is purchasing or leasing equipment for the business whether it is farm equipment, kitchen equipment, cars or trucks, or even office furniture, the business may need to take out an equipment loan to finance the purchase or lease. Equipment financing is a small-business loan that uses the equipment being bought as collateral for the loan. The lender will base the interest rate on the borrower's credit score, time in business, and business revenue. The more trustworthy and established the business, the lower the interest rate. An equipment financing loan can have an interest rate of anywhere between 8% and 30%. The payback period is usually the expected life expectancy of the equipment being bought.