Equipment financing is something that almost all small business owners are faced with at some point, and when the issue does come up, there are a number of questions which typically arise.
Some of the most common of these questions are answered below.
Q: Do I need to have outstanding credit?
A: No, it it not necessary to have perfect credit. It helps a great deal to find a lender who is familiar with your industry and its particular issues, because they will be more understanding about credit history.
Q: Is it possible to get financing for used equipment?
A: Yes, it is. The key to securing financing for used equipment is finding the right lender, again someone familiar with your industry, who is aware of business needs and equipment needs.
Q: How is equipment financing different from leasing?
A: One of the biggest differences is that with equipment financing, you own the equipment at all times. With a leasing arrangement, the lender owns the equipment for the duration of the lease.
Q: Is it best to pay cash for equipment?
A: Not usually. It is almost always a better strategy to keep your cash in reserve, so as to manage day-to-day operations and maintain good cash flow. Equipment financing will allow you to make manageable monthly payments, and keep your cash available for business needs.
Q: What is flexible financing?
A: Flexible financing differs from typical financing, which has all monthly payments the same. In flexible financing, you might skip certain months or you might not pay anything for the first three to six months, or you might pay increasing/decreasing amounts over the duration of the lease.
Q: How long does a typical lease go for?
A: Normally between 24 and 60 months, although this can vary depending on the amount of monthly payments, any special considerations, and the total cost of the equipment.
Equipment financing with Norus Capital
If making that all-important purchase of equipment vital to your industry is holding back your company, we may be able to provide financial assistance.
Contact us at Norus Capital, so we can discuss some options for arranging the needed financing for your equipment purchase.