Use Equipment Financing
Equipment financing or equipment leasing is 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.
Keep reading to learn more about equipment financing and compare your business equipment loan options.
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?
Here’s how equipment financing loans can get you on track to grow your business.
When your business needs a certain piece of equipment to get started or reach the next level, a small business equipment loan could be the right move—especially when you don’t have cash on hand to purchase a piece of equipment. Equipment leases are very similar to auto loans. Even if you have bad credit, equipment financing can still be an option.
You can use the proceeds of business equipment financing loans to purchase almost any kind of business equipment, from computers to cars— construction equipment, heavy equipment and everything in between.
Let's get started.
Equipment financing helps you finance up to 100% of the new or used equipment you need for your business. Applying for an equipment loan is typically a fast and easy way to finance the purchase of ALL types of equipment—computers, machinery, vehicles, or whatever else you need.
Leverage equity in your owned Equipment
With a secured loan against your equipment, you can take advantage of the equity in your existing equipment, or use newly-purchased equipment as collateral.
Up to 100% of Equipment Value
1 - 8 Years or Expected Life of Equipment
As Low as 4.59%
As Fast As 2 Days
PROS
- Avoid large upfront costs for equipment purchased
- Monthly Payments
- Longer Terms
- Minimal Paperwork
- Equipment is used as collateral
CONS
- Equipment could be obsolete by the time loan is paid back
- Equipment Depreciates - You cant deduct full cost each year
- Rates & Terms heavily determined by credit and equipment
Who Qualifies for Equipment Financing?
As it turns out, most businesses can qualify for equipment financing loans even start up businesses. Equipment financing approvals are based on personal and business credit scores, industry type, positive trade history, existing trade lines, Debt Coverage Service Ratio, and the equipment quotes provided by the business owner.
How much you qualify for and the interest rate you’ll pay is determined by the value of that equipment, your business’s financial history, and your credit scores.
Equipment financing can be a great option if your credit rating is less than perfect, too, since the equipment acts as collateral. You can also leverage existing owned equipment to get a loan using your equipment as the collateral.
In fact, our underwriting team is just as concerned with what’s securing the loan, as we are with your borrowing history. The type of equipment you are purchasing is an important aspect in the approval process.
So, if you’re planning on investing in a high-value (and value-retaining) piece of equipment, then we might be willing to work with you, even if your credit profile and finances are not pristine.
Our equipment financing team will assist you in finding the right equipment and make sure your approval is custom tailored to fit your business needs.
Most Customers who were approved for Equipment Financing had:
**Based on Previous Upwise Clients
Over $100K
Over 550+
6 Months or More -- Start Up Businesses with Good Credit Encouraged to Apply
Good Financial and
Tradeline History
What Equipment can you finance?
Office Equipment
Energy Equipment
Medical Equipment
Vehicles & Trucks
Construction Equipment
Corporate Aircraft
Restaurant Supplies
What does Equipment Financing Cost?
With equipment financing, the most important thing to keep in mind is that it stops you from needing to pay the entire cost of that equipment upfront. It is just like a lease to own program when financing a car. Instead, you’ll pay it off in regular installments, until you own the equipment outright.
However, because you will be paying interest on financed equipment over a longer period of time, you’ll be paying more total money with an equipment loan than you’d pay if you purchased the equipment outright without financing. The tradeoff is worth it for businesses that can’t afford a large, upfront expense or do not want to deplete their cash flow with such a huge one-off purchase.
Equipment financing is a great option for all small businesses looking to expand their business. A variety of different things can be considered equipment for a small business, so please make sure to ask your Upwise equipment specialist what items are considered equipment by our underwriting team.
An Example of the Pricing on Equipment Financing
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 businesses 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 financing it with a business equipment loan! You have to weigh your opportunity costs.
Through indecision 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 financing 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 loan.
At Upwise we offer equipment financing program with terms ranging between 1 – 8 years. Most equipment financing lenders only offer up to 5 year terms maximum.
Our equipment financing team here at Upwise capital, 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 financing works, please call our team at 77-55-UPWISE.
- Likely Tax Advantages Under IRS 179
- Finance Rates as Low as 4.59%
- Flexible Payback Terms from 3 Months – 8 years
- Numerous Types of Leases (True, FMV, $1 buyout, etc.) for All Businesses
- Fast Approvals – Same Business Day
- Less Documentation and Faster Funding than Other Options
Are you Interested? Don’t wait and Apply now!
Upwise Capital offers a number of Equipment Financing Products to help your business grow.
be Prepared
Documents Required for equipment financing
The best strategy to follow before you apply for these loans is to be prepared. The more readily available your documentation is, the faster you’ll move through the process.
The following is a checklist of the most commonly collected documents. It can be very helpful to work with your accountant or tax preparer to gather some of the financial documentation.
We require at least 3 months of your business bank statements. If showing more gives us a better picture on how your business performs, feel free to send us a full year of statements. You may have more than one business bank account, so please make sure to include these statements for each account.
Upwise Capital requires the previous 2 years of business and 1 year of your personal income tax returns.
These can include entity and location documents such as business licenses, Articles of Incorporation, commercial leases, or franchise agreements.
To ensure all of your information is correct on the contracts, we require a clear copy of you DL & VC to verify this information.
Tell us about the equipment your interested in. It can be anything from heavy machinery, trucks, signage, computers, supplies and everything in between.
A lot more than you would think, can be considered equipment. If you are not sure, just ask us!
Provide us a quote or invoice - from the vendor or private party for the equipment you want to purchase.
We empower people to implement ideas & grow
Upwise has the newest ways and options to help you rise and become more successful.
Let us guide you to make wise decisions.