What Is Equipment Financing?

One of the most vital pieces of a business is its equipment, without it, a business wouldn’t perform well or wouldn’t be in the market at all. Obtaining expensive equipment is one of the most common reasons owners see to obtain equipment financing.

But what exactly is equipment financing and how does it work? We know there a lot of questions that are bothering you about equipment financing, and in this blog, we are going to do our best to answer all those questions.

What Is Equipment Financing?

Equipment financing is a type of financial loan that is used to buy, rent, or lease hard assets, particularly equipment, for your business. Not only that, some types of equipment financing allow you to hire more professionals in your business. The most important thing you need to know about equipment financing is how it works, what its rates are, and what type of equipment you can buy from the money that you get from it.

You want to make sure you know every single detail about the type of equipment financing. Another thing that you should know is that the equipment you’re going to buy will serve as a type of collateral, so if you fail to pay the loan back, the company that provided you with the money has the authority to seize your equipment.

Why You Need It?

If you’re a business owner that is planning to add more equipment in their assets, you need equipment financing. Business owners in the following situations apply for equipment financing:

1. Need expensive equipment
2. You want to lease equipment but can’t afford to
3. You need to hire more people
4. You need to increase the services you’re offering
5. Want to stay relevant in the field you’re in
6. You need to replace your equipment frequently as it has a short lifespan
7. You need the latest technology

Have questions or queries about equipment financing? We would love to answer your questions. Call us on the number below or send us an email so we can fix a telephonic call.

Are You Qualified?

Businesses that have a good credit score, are earning well and can show that they can repay the loan are qualified to apply for equipment financing. With equipment financing, you can buy expensive machinery, tools, computers, vehicles, and other materials that are required in your business so it can run smoothly.

To know if you’re qualified, you need to know the requirements for equipment financing. But on average, you need to have a 600 credit score and a good monthly and annual income. You also need to show that you’re paying your taxes and that you’re capable of repaying the loan in a certain amount of time.

Why Pioneer Financial Services?

Pioneer Financial Services is the best equipment financing company that offers loans, IFTA filing Alberta, Truck compliance Calgary, and truck insurance at the best prices. If you have a bad credit score, we can also work things out for you and help you obtain a loan.