Debunking 3 Myths of Equipment Financing for Small Businesses

Debunking 3 Myths of Equipment Financing for Small Businesses Whether you are a new business or have been running a shop for a few years, equipment specific to your line of work is a staple. You cannot do without it.

Now, equipment for an enterprise can be anything from an industrial-grade manufacturing unit to a copy machine or a laptop. The right equipment allows you to fulfil your business promises to the clients, scaling progress. It’s that one area where you cannot compromise. However, often what is essential comes with an expensive tag, and not all businesses can afford it. Are you facing a similar dilemma? Then equipment finance is your solution to financing and business development.

The issues with business financing arise from preconceived misconceptions, which often become the worst hurdles to overcome. Equipment finance has similar reservations and myths around it. So, we have taken up this article to end all the fallacies once and for all.

No Myths, Only Facts on Equipment Finance Here begins your research on equipment finance as we debunk the common myths.

Myth 1: You Cannot Buy Used Equipment It is normal for businesses with cash crunch to incline on equipment that have moved hands. The price is significantly less, so it helps them to save some dollars. Equipment functionality is what should matter. And to answer your question and debunk a myth; yes you can get financing even for used equipment. Some lenders can readily offer you flexible loan options for buying machinery and equipment. You only need to find yourself a reputed finance broker to liaison for you.

Myth 2: Equipment Financing is Expensive This myth involves all kinds of financing, including equipment finance. Let's think this way; you are running a business, and it is low on cash flow, but there is a piece of equipment you need urgently. Equipment finance gives you access to immediate cash flow, which helps you in buying what you need for your business to function better. Instead of getting the equipment through liquid cash at once, you are now paying small instalments over a period. So, to break this

misconception; no, equipment finance is not expensive. On the contrary, it is the smart way of planning your business expenditure and investment.

Myth 3: Only Certain Equipment is Eligible for Financing Most people associate equipment finance with buying large machinery, industry-grade equipment, and medical devices. The truth is you can buy all kinds of equipment with this loan, provided you are using that solely for business purposes. In recent times, with more companies relying on remote operations and digital infrastructure, it has become common for owners to buy software using equipment finance.

Conclusion To reap the benefits of equipment finance or any other business loan, you need a reliable finance broker by your side. A broker is a partner in your financing endeavours who will connect you with appropriate sources for fast approval and easy funding. Often, a business loan falls through because of the wrong approach. Therefore partner with an able professional to get seamless financing solutions for your business.