Business equipment loans
Business equipment loans are those loans that are provided for buying different types of equipments used in the business organizations. This amortizing term loan is provided at fixed as well as variable interest rate and the repayment period varies from one lender to another lender. This loan is provided as a secured loan and the equipment bought out of loan finance is generally held as security. The reader should understand that vehicles used in the business operations are also included in the category of business equipment. Apart from this, various types of machineries, computers etc are also included in the category of business equipments and eligible for receiving finance. Let us discuss business equipment loans in United States to know more about them.
Business equipment loans in united states
There are many sources of business equipment loans in United States. For example, CB&T, the California Bank and Trust is one such source. Since it requires same equipment as the collateral for the loan, the loan proceeds are paid directly to the equipment seller. Though there are some qualifying criteria for getting this loan, these are flexible as compared to the lines of credit and other types of business loans. The maximum loan amount provided by this source as equipment loan is $250000. The loan amount depends upon many factors like type of business, the size of business unit, the age of equipment, the down payment that can be afforded by a person etc. Minimum amount of equipment loan provided by this source is $10000. The equipment loan can be repaid in maximum of 5 years. The repayment period also depends upon many factors like the amount of down payment, the age of equipment etc. In the business equipment loans where SBA provides guarantee, longer terms are easily available.
So far the interest rate is concerned; this source provides business equipment loans at the overall risk attached with the borrower. The interest rate is generally provided at floating interest rates with respect to Prime Lending Rate. This source also charges some loan fee, which is charged one time only. The fee is generally 1% of the loan amount. Apart from this, late charges and other closing costs are also applied by this source at the time of providing the business equipment loan. For getting business equipment loans from this source, there are some criteria that have to be fulfilled by a person. First of all, business must be profitable. That is, a person must be able to generate some profits out of business. Second, all the principals of the business that have more than 20% of ownership in business must provide personal guarantee for the loan amount. The credit history of a person must be acceptable to the lender. In case, the loan amount is more than $50000, a person is required to provide the personal and business information in detail. All the business equipment loans are secured by way of collateral. A person is eligible to get 100% financing for the new business equipment and 75% financing for the used or old business equipment.
Wells Fargo and Company is another source that can be contacted in United States for getting business equipment loans. This source is basically a diversified finance service company and provides different types of services like investment, insurance, banking, consumer finance etc. There are more than 6000 stores of this source all over the world that can be contacted for getting any type of service. Headquarters of this company is located in San Francisco. This source provides business equipment loans for new as well as for used equipments by means of Equipment Express Loan. These loans are provided at competitive interest rates and a person can easily get pre-approve for business equipment loans. There is no application fee attached to these loans and similarly, there are no prepayment penalties attached. A person can get a business equipment loan from $10000 to $100000 at this source and a person can utilize more than one loan within the same credit amount approved.
The minimum draw amount for the business equipment loan is $5000. There is no annual fee attached to this loan and a person is required to pay documentation fee at the rate of $150 for first loan only. For additional loans taken under the same credit amount, there is no fee attached. A person can get a 6 year maximum repayment period in case of new vehicles. If any other new business equipment is purchased, the repayment period is 5 years. In case of used vehicle, the maximum repayment period is 5 years and in case of other used equipments, it is 4 years. If any new communication equipment or computer is purchased out of loan amount, the repayment period is 3 years. A person can get up to 100% finance for the new equipment and up to 75%, in case of old equipment. The reader should note here that used computers and communication equipment are not eligible for the business equipment loan. All the business equipment loans are provided at fixed interest rates and thus, interest rate remains fixed for the full life of equipment. The loan amount is paid directly to the seller by means of cashiers check. A person is given the time of 12 months to use the credit limit or amount provided and a person can also use this amount towards purchased made in the last 6 months.
Key is another source of getting business equipment loans in United States. A person is allowed to make interest only payments during the first 6 months of equipment loan. At the end of this term, principal and interest amounts are amortized for the remaining loan term. A person has to option of choosing the fixed or variable interest rate. The maximum amount of loan depends upon many factors whereas the minimum loan amount is $10000. A person is not allowed any multiple drawings out of loan amount. This source can be contacted at 1-888-539-4249. The corporate headquarters of this source is located at 127 Public Square, Cleveland, Ohio 44114.
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