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Looking to purchase equipment or make a large business investment, but need a lump sum of cash? Advanced American Funding understands that investing in high-quality equipment and other business upgrades is crucial for boosting productivity, improving operational efficiency, and ultimately driving the success and growth of your business. However, the associated costs can be a significant barrier for small businesses, requiring substantial upfront investment. That’s where term loans can help by providing the necessary funds to make an outright purchase.

If you prioritize growing your business, having the right equipment is key. But how can small businesses access the funding needed for equipment upgrades, renovations, or expansion? Depending on your specific business needs, an equipment or term loan may be the answer.

Equipment financing is a funding option that enables businesses to purchase equipment required for business operations and growth. This type of lending can help free up working capital and increase revenue. Advanced American Funding offers multiple viable options for small business owners to obtain financing for equipment and other growth initiatives. Factors to consider include the approximate loan amount needed, business revenue, repayment terms, credit scores (personal and business), and projected return on investment (ROI).

Term loans are an excellent option for small business owners in need of quick access to cash to upgrade their businesses. With term loans, you receive a lump sum upfront, which you’ll repay, along with interest and fees, over a fixed period. These loans can range from short-term loans with repayment periods of one year or less to longer-term loans with repayment periods up to 10 years. Term loans provide greater flexibility in the ways you can use the funds compared to equipment-only loans. For example, you could use the funds from a term loan to extend operations, buy equipment, or finance new marketing or advertising initiatives. Additionally, equipment owned by the business can be claimed on the business’s tax return as a depreciating asset.

Equipment loans are designed to finance your equipment, with the equipment itself acting as collateral. Once you’ve finished making payments, you’ll own the equipment. This type of lending can help improve your business’s working capital for other expenses, and equipment lenders are usually more flexible when it comes to credit scores and financial history. However, equipment loans have restrictive usage terms, high down payment requirements, maintenance liability, and depreciation risk.

Equipment leasing is an alternative option to consider, allowing you to lease equipment for a set period of time. Unlike equipment financing, equipment leases generally do not require down payments or collateral and may have lower monthly installments than an equipment loan. However, depending on the purchase payment terms at the end, leasing could end up costing you more in the long run.

In summary, obtaining equipment financing for business upgrades, expansion, and equipment purchases requires careful consideration of the unique needs of your business. Thoroughly comparing terms between lenders before making any commitments can ensure you’re getting the best possible financing deal for your business.

If you’re a small business owner in need of funding, Advanced American Funding can help. Whether you’re expanding or looking to purchase equipment and inventory, a business term loan can be used to invest in the growth of your business. Apply now and find out in minutes if you’re approved, with funding available as soon as the next business day.