Equipment financing or equipment leasing options are a type of small-business loan designed specifically for the purchase of machinery and equipment essential to running your business. You can use an equipment loan to purchase anything from office furniture and medical equipment to farm machinery or commercial ovens.

Small business growth can come in many different forms, but all small business owners know that it takes money to make money. Sometimes you just need that new piece of equipment or machinery to rev up your business growth and start bringing in more revenue… But how can you afford that equipment to catapult your business with Upwise?

You can use the proceeds of a business loan to purchase almost any kind of business equipment, from computers to cars— construction equipment, heavy equipment, and everything in between.

An Example of the Pricing on Equipment Funding

Let’s say you have a piece of construction equipment you’d like to purchase that costs $10K.

Upwise offers to front you the cash to purchase that equipment, but they’ll charge you 12% simple interest over a 3-year (or 36-month) term.

With a 12% APR, your business equipment loans will make it so that your $10K piece of equipment will actually cost you $11,957.15, with a monthly payment of $332.14 over the next 3 years.  

As a business owner, it makes more sense to have a $332.14 monthly expense for the equipment rather than coming out of pocket for $10k upfront.  

Some Questions to Ask Yourself About the Cost

At this point, you need to decide whether or not a business equipment loan is right for you, you’ll have to take a look at your business’s finances and ask yourself whether an equipment financing loan makes sense for your business plans.  

Can you save some money by shelling out $10K upfront for the equipment avoiding interest payments, or will that huge expense hurt your business’s cash flow too much?

And if you can’t afford it now, should you chose to wait until you are able to save up enough money and buy the equipment later?  

It could mean lost profits since you could have used that equipment in the meantime by funding it with a business equipment loan! You have to weigh your opportunity costs.  

Through indecision, the opportunity is often lost. Fundamentally, you need to figure out whether the opportunity cost of waiting and saving outweighs the interest payments you’d make to have that equipment right now with an equipment funding loan from Upwise.

Equipment can be considered one of the largest purchases a business owner makes in the life cycle of their business. If you plan your business finances well, the right piece of equipment should bring in a lot more revenue for your business, than you are paying in interest for the equipment loans. 

At Upwise we offer equipment financing options with terms ranging between 1 – 8 years. Most equipment financing lenders only offer up to 5-year terms maximum.

Our loan team here at Upwise is here to assist you every step of the way in securing that equipment needed to help your business grow Upwise. If you have any questions regarding how equipment funding works, please call our team at 77-55-UPWISE.