For businesses that need a lot of expensive equipment to start or grow their businesses, Texas Commercial Loans can be the ideal avenue for cash advance. Equipment loans have their own unique set of specifications so here are some tips to help you understand the requirements, pros and cons of this type of loan.
An equipment loan is designed expressly for a bank or lending company to extend most of the financing typically 80 to 90 percent needed to purchase equipment for the business, with the business owner responsible for the other 20-10 percent as well as repaying the Texas Commercial Loans in monthly increments.
There are different types of equipment loans, and a variety of lending options from conventional banks to alternative lenders such as credit unions and online sources that are reputable. Even the United States Small Business Administration offers backing for equipment loans.
There are many upsides to obtaining an equipment loan. These include reasonable payment schedules, relatively low interest rates, and the ability to use the equipment to be purchased as collateral. Most importantly, this type of loan makes it possible for new and small businesses to purchase the expensive equipment they need to get their business off the ground or grow it.
As with any type of Commercial Loans, in addition to the benefits, there are also some downsides to consider with an equipment loan.
First of all, you must have good credit to qualify for this type of loan; and equipment financing also requires a down payment that may be too substantial for a small or new business to manage. Sometimes, the loan’s terms may outlive the lifespan of the equipment. However, even it that is the case, you will still be required to repay the full amount of the loan even if the equipment breaks or stops working all together.
For the most part, equipment Texas Commercial Loans can be a very helpful way for businesses to get started without having to front all the cash for the pricey machinery they need.
Seeking the counsel of a professional lender can help answer your questions about how to proceed with applying and getting approved for equipment financing. It’s important that a business have the proper equipment in place before opening its doors or in the case of expansion and the right lender can help you recognize your needs and get the equipment loan that is right for your business. Lenders can also help negotiate terms for you and help you sort out the exact documentation and paperwork you will need to apply for the loan. When it comes to equipment financing, do your research, weigh your options and talk to a professional before moving ahead.
Level 4 Funding LLC Private Hard Money Lender
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.