Business Equipment Loans
Some types of equipment will have shorter terms than others because of faster rates of obsolescence. For example, computer equipment is typically amortized over a maximum three years, a crop harvester over a 5-year period, and a printing press over seven years. All things being equal, cash flow repayment ability within the appropriate time period is to have precedence over useful life. If a borrower cannot repay the equipment loan in the appropriate amortization period, the underwriting is usually readdressed with such alternatives as a lower loan amount, guarantors with sufficient cash flow to amortize the loan adequately, or other acceptable mitigants.
Business equipment loans provide the cash on hand required to make these major purchases. Equipment constitutes a capital expense and is a necessary element in the success and continued operations of most business concerns. Factories, assembly lines and heavy construction equipment are the most visible examples, but automobiles, office equipment, computers and telephone systems can also be financed using lending for business equipment arrangements. Finding the right business equipment loan can be challenging, especially for novices to the financial services world. Understanding the financial implications in the differences between secured and unsecured loans and between variable and fixed-rate interest rates can potentially save businesses thousands of dollars and ensure the security of the business for many years to come. By identifying and applying for the right business equipment loan opportunities, smaller companies can ensure their financial viability in the competitive marketplace.
CNF Exchange specializes in helping prospective borrowers locate the right business equipment loan opportunities for their companies. This can allow these smaller businesses to acquire the right equipment for their needs, even when that equipment requires a significant upfront investment. Business equipment lending arrangements provide the capital necessary to begin or continue operations and to remain competitive with rivals in the local, regional and global economies. CNF Exchange provides an exclusive system that connects lenders and borrowers to create new business relationships and to benefit both sides of the financial transaction. By putting the power of this exceptional online platform to work, companies and lenders can achieve their financial goals more effectively and profitably.