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Confidence Rises in Equipment Financing
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1 Reply
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The team at Gustan Cho Associates and its wholly-owned subsidiaries are experts on equipment financing. Equipment financing refers to various financing options allowing businesses to acquire the necessary equipment without paying the full upfront cost. Here are some key points about equipment financing:
Types of Equipment Financing:
- Loans – Term loans for purchasing equipment like machinery, vehicles, computers, etc.
- Leasing – Renting equipment from a finance company through fixed periodic payments.
- Hire Purchase – A hybrid lease-to-own agreement where payments eventually build equity to own the equipment.
Benefits of Equipment Financing:
- Preserves working capital instead of tying it up in large equipment purchases
- Allows companies to acquire needed equipment they may not have funds to buy outright
- Payments are treated as expenses for tax deduction purposes
- Some plans offer flexible end-of-term options to upgrade or purchase aging equipment
Financing Sources:
- Banks and credit unions
- Equipment manufacturers/vendors
- Independent equipment finance companies
- Alternative online lenders
Typical Requirements:
- Credit assessment of the business and owners
- Down payments of around 10-30%
- Detailed information about the intended equipment use/purpose
- Projections showing equipment will generate returns covering payments
Equipment financing enables businesses, especially smaller ones, to access costly machinery, tech, vehicles, and other vital equipment through affordable payment plans. However, it also creates a debt that must be properly managed. Evaluating different financing structures is advisable. Contact Gustan Cho Associates today to get approved for equipment financing:
Gustan Cho NMLS 873293
Branch Manager | NEXA Mortgage, LLC.
National Managing Director | Gustan Cho Associates
Cell: 262-627-1965 Text for a Faster Response
Fax: 262-546-5660
Email gcho@gustancho.com
Secure Email: gcho@nexamortgage.com
Angie Torres | National Operations Director
Direct 262-716-8151 Text For a Faster Response
eFax 262-546-5660
Email: angie@gustancho.com
Secure Email atorres@nexamortgage.com
Gustan Cho Associates | NEXA Mortgage, LLC
17W662 Butterfield Road Suite 305
Oakbrook Terrace, Illinois 60181
Branch NMLS 2315275
Company NMLS 1660690
Website: http://www.gustancho.com