5 Tips for How to Get an Equipment Loan
Does your business need to buy a new piece of equipment?
Maybe you need to acquire a lawnmower for your landscaping business. Maybe you need to obtain a walk-in freezer for your restaurant business. Or maybe you need a conveyor belt for your factory business.
Whatever the case, you might not be able to pay for this piece of equipment outright with cash. But you'll be happy to hear that you can get your hands on an equipment loan that will provide you with the funds you'll need to secure the necessary piece of equipment.
Equipment loans can really come in handy for many business owners, especially when they need to buy a piece of equipment when they least expect it. These business equipment loans will come to the rescue and ensure that you don't have any trouble investing in this equipment.
Here are five tips on how to get an equipment loan that will benefit your business in a big way.
1. Begin by Figuring Out How Much a Piece of Equipment Will Cost
Before you even think about trying to take out an equipment loan, you should check to see what a new piece of equipment is going to cost you. It'll make it so much easier for you to apply for a loan for equipment.
The last thing you want to do is guess how much equipment is going to cost you and come up short. In this case, you may end up taking out an equipment loan only to discover that you didn't borrow enough money.
It would be worth spending some time shopping around for the specific piece of equipment that you would like to buy. It'll enable you to let an equipment loan lender know precisely how much money you're interested in borrowing.
2. Look For Lenders That Specialize in Providing Business Equipment Loans
Not all lenders are going to be cut out to provide equipment loans to those who need them. There are some lenders that will only give out home loans or only dabble in auto loans.
You should search for lenders in your area that know the ins and outs of equipment loans by Googling "equipment loans near me." You should also keep your eyes peeled for any lenders that provide "term loans" since these can also be used as equipment loans.
But regardless of which lender you choose to work with, it's important to be sure that they're cut out for the job. They should have:
- A wealth of experience in the lending industry
- A variety of different types of loans that you can choose from
- Great interest rates on the equipment loans that they can provide
- A top-notch customer service team
It might take you a few days or possibly even a few weeks to find out what the different lenders in your area can bring to the table. Your goal should be to locate a lender that's going to go above and beyond for you once you begin working with them.
3. Make Sure an Equipment Loan Makes the Most Sense for Your Business
There are so many different types of business loans that you might be able to qualify for as a business owner. You should consider as many of them as you can before settling on an equipment loan as your best option.
This is another reason why it's imperative that you pick out the right lender to assist you with an equipment loan. They might be able to suggest a better loan for you based on your specific needs and your financial situation.
A loan officer can sit down with you for a little while and speak to you about why you want to take out an equipment loan and what you plan to use it for. It'll allow them to point you in the right direction in terms of which loan you should take out.
4. Have a Plan for Repaying an Equipment Loan
Before you apply for any sort of equipment loan you should have a plan for how you are going to pay it back. Most banks will ask you this at application and it will speed up the process if you have a realistic plan for repaying the loan.
You're welcome to pay the minimum amount that a lender will accept each month to satisfy the terms of an equipment loan. But you might also want to speed up the repayment process by throwing a little bit of extra money at your loan every month if your lender will allow it.
5. Fill Out an Application for an Equipment Loan to See If You're Approved
If you make it to this point in the process and feel like an equipment loan would be your best bet, you should go ahead and begin the application process for it. You can apply for an equipment loan right online in most cases and find out if you're approved quickly.
If you are approved for an equipment loan, you can also take a look at the terms that will come attached to the loan a lender is willing to give you. You'll want to pay close attention to:
- The total amount of money that a lender will give you as part of an equipment loan
- The interest rate that will come attached to your equipment loan
- The time that you will have to pay back an equipment loan
You should try to get as much information as you can on an equipment loan so that you're able to make a smart decision as far as whether or not to accept it. You should also attempt to use an equipment loan calculator to see how different loan terms will impact your loan balance.
Contact Us to Learn More About Equipment Loans
Do you think that small business equipment loans might benefit your business? Our family-owned and operated bank would love to tell you more about equipment loans and explain how they work.
We can also walk you through the process of applying for an equipment loan and do our best to improve your chances of getting approved for one. We'll assist you with every aspect of your application and answer any questions you may have.Get in touch with us today to speak with a loan officer about applying for equipment loans in the Magic Valley area in Idaho.