What are the advantages and disadvantages of Business Equipment Finance?
You are running a small business, and you already have limited equipment to deal with. As your business grows, you need to increase staff and therefore, you have to include new types of machinery. Another situation is where you need to repair the older machines urgently to continue the production.
In both these situations, you need money, and with limited earning as a small company, you sometimes struggle a lot. It is where commercial equipment financing brings many benefits to your favour. Continue to read below the advantages of equipment finance:
Benefits of Business Equipment Finance
Excellent Purchasing Chances
You can increase your purchasing power as a small business owner with equipment financing. It is not necessary to buy when you have to buy. You can purchase equipment as an addition to your existing one.
Instant Loan Approval
With online lending, you have the chance of availing of instant loan approval. There will be a short application procedure, which you can complete within 5 minutes. Lenders also do not take much time in approving equipment finance for you.
Flexible Finance Options
You have many options to choose the best one of them. The direct lenders give you the liberty to choose how much amount you need and set the repayment terms accordingly. Flexibility also comes when it comes to your bad credit score.
Easy-to-manage working capital
You can plan working capital more efficiently. You can predict the payments and the cost of the equipment to purchase. There is nothing like missing the repayments, and you can pay your staff more conveniently.
If you opt for the equipment lease option, then it will benefit you in tax efficiency. It is because leasing becomes a regular monthly cost in comparison to direct buying. Buying equipment will include a certain tax.
Disadvantages of Business Equipment Finance
Business equipment finance does have many advantages, but it has some disadvantages too. As a borrower, you should know about all the risks involved. Here are the possible risks involved:
You may lose Possession of Equipment
Most lenders tend to ask security to offer the equipment finance. Since you are a small business owner, you have to keep those new pieces of equipment as the loan collateral. If you miss the monthly instalments and do not repay the loan, the lender will take possession of the equipment.
Equipment Financing is not an entire financial solution
If you think that commercial finance equipment can work in all financial situations, then you are wrong. These are specific loans that work only when you plan to purchase new business equipment or repair the existing machinery.
No Security Cover
If you are looking for business equipment financing, you need to know that no accidental cover is included. The costs related to any technical problem and damage will be levied on the purchase, not on the lender.
How does Business Equipment Finance work?
24cashfinances helps all the businesses in the UK to obtain business equipment financing. We provide this facility to all industries with varied shapes and levels. Purchase new equipment and grow your business like never
If you wonder how the financing works and do you need something special to get the approval, you are thinking too much. We make available the equipment financing within 24 hours, thanks to our advanced online loan procedure.
Follow the given below steps and submit your application:-
Click on to ‘apply now button and fill in your details. Reveal to us which equipment you need to buy and how much amount you want from us;
Submit the application and wait for the loan quote. It will include the final interest rates and repayment terms.
Analyse the loan quote and give your confirmation. You should contact us early if you want any changes in the loan quote.
Once everything comes on track, we release the funds to your bank account through online transfer. Now, you can purchase the equipment and grow your business.
Before submitting the application for equipment financing, you need to qualify on these simple conditions:-
Your age should be above 21 years;
You must be running a registered company;
Your company should have the minimum monthly turnover of £5000;
You must have been doing business in the same industry for the last 6 months;
You should not have any bank default, CCJ or bankruptcy charges against your company.
Why 24cashfinance for Business Equipment Finance?
Small businesses in the UK have been trusting 24cashfinances for quite a few years. We have helped hundreds of small businesses whenever they needed additional funding for the working capital.
For us, it does not matter whether you are applying for business equipment finance to purchase new equipment, repair older pieces of equipment, or even hire more staff to increase productivity. With us, you will have no hassle in financing your business equipment.
Here are the features of our business financing assistance:-
No harm to your credit score
We offer genuine loan approvals, which do not leave any impact on your credit score. The loans here are subject to a credit check, but it will be a soft credit check. In addition, our flexible repayment terms improve your credit profile.
Higher loan approval rates
When you look for business equipment financing, your past credit score does not matter to us. We approve the loan for you based on your recent financial circumstances. If you are good at current payments, you are allowed to have more chances of loan acceptance.
No restrictions on buying equipment
Unlike other lenders, we do not put restrictions on buying any machinery for your business growth. We offer to finance for every kind of business equipment irrespective of location, industry and vehicle type.
No personal guaranteed needed
You are looking for equipment financing. We do not want to increase the burden of finding a person to take your loan guarantee, especially when you already lack the funds. Therefore, no guarantor is needed, and you can get the funds quickly.
Get a decision on your business equipment finance in minutes without any impact on your credit score. Apply now and get an instant quote.