Everything You Need To Know
What Is Business Equipment Financing? Asset Finance Overview
Is there a single business in the UK that is not dependent on equipment for its smooth and successful, day to day running? Probably not. Practically every business owner relies on equipment of some form or another, but purchasing, maintaining and replacing equipment can come at a substantial cost that can be challenging for small or new business owners to meet.
Once upon a time, businesses would likely have turned to the banks for extra financial support, but fewer and fewer banks are choosing to lend to smaller SMEs. Fortunately, there are alternative funding options out there to help you secure the equipment your company requires, as soon as it requires it.
Business Equipment financing is a type of business funding that provides companies with the required capital to purchase equipment. As just a few examples, this can include the purchase of heavy machinery, vehicles, computers and any other sort of expensive office equipment.
Using business equipment financing, your company will be provided with the necessary funds to secure your required business equipment, and in return you will be required to pay back the money with interest in scheduled monthly repayments.
Why Do Businesses Need Equipment Financing?
With banks becoming less and less inclined to loan out money to smaller and new companies, business owners need other ways to finance the basic requirements of their businesses.
Generally, equipment needs to be replaced and updated on a largely regular basis. For the most part, it is not just a single, one-off cost; technology is continually advancing and it is essential for business owners to keep up with these advancements to avoid falling behind the times; a computer from only seven years ago is unable to carry out all of the same functions as a computer of this current year.
This need to update business equipment is of course costly, and that is where equipment financing comes in, aiding business owners to keep their assets up to date and on top of their game. Business equipment financing can also be a real life-saver if random and unexpected breakages occur; you will be able to have a new printer, truck or whatever else it is your business requires right away, without your cash flow and working capital having to be compromised in the process.
How Often Do Businesses Need To Consider Equipment Financing?
As practically every single company is reliant on equipment, equipment financing is a popular and very common funding option. Many entrepreneurs regularly use equipment financing throughout their careers, to help keep their cash flow steady and their business running smoothly and as successfully as it possibly can. Every couple of years you may wish to replace and update certain equipment, and equipment finance can help you to easily afford to do so.
Why Is It Difficult For Businesses To Raise Enough Capital To Fix Equipment & Purchase New Assets?
New equipment and even repairs to old equipment, can cost your business a substantial amount. For smaller or new businesses in particular, this cost can be exceedingly difficult to afford upfront. Equipment is generally a cost that cannot be skimped on however, as good quality and reliable equipment is essential to every business. Certain types of equipment need to be updated frequently, and of course unexpected breakages can occur even to equipment of the very highest quality. As such, the cost of equipment is an on-going one which can potentially be difficult to budget and save for as a small company who likely has a more limited cash flow.
Equipment financing is therefore vital for smaller businesses, to help them afford the resources they need to function efficiently. Without it, many business owners would struggle with their cash flow and the general upkeep of their company.
Equipment Finance Loans For Business Equipment
If you think that equipment financing could be a well suited option for you, SME Loans is able to provide you with both business loans or merchant cash advance products to aid your business in its development.
Both of these financing options carry many great benefits and are easier for small and new businesses to obtain than loans from traditional banks. As we are passionate about the growth of small businesses and have the best interest of business owners at heart, we offer fast access, competitive interest rates and repayment terms that are flexible.
There are so many great benefits that a business loan can provide your company with, most obviously an increased and steady cash flow. SME Loans is able to offer you a business loan at the best rates, helping to keep the amount you repay as low as possible. By applying for funding between £1,000 and £500,000, you open up numerous opportunities for your company, helping to quickly resolve any potential working capital issues that you may have.
As well as this, we offer tailored repayment plans to borrowers; fixed monthly payments will be made over the course of one to three years, depending on your personal situation and requirements. With our business your needs will be accommodated as well as they can be.
Merchant Cash Advance
A merchant cash advance is an exceedingly convenient and flexible way to receive the funding your business requires to secure whatever equipment it demands.
Our merchant cash advance product is offered to businesses on an interest-free basis, and the advance will be repaid in accordance with your monthly revenue and the fixed-fee which is agreed upon up-front between yourself and the lender. As the monthly payments are made in accordance with your monthly revenue, meeting repayments should be easily manageable; if one month you earn less, your repayment will in turn be less, so you should never feel under any financial pressure or strain.
With the merchant cash advance you can access between £5,000 and £500,000 for your business equipment needs in just 24 hours.
Applying For Equipment Finance SME Loans Funding Solution
We know that for business owners, time is money. Which is why our application process for business equipment financing is designed to be quick and hassle-free.
Our online application can be completed from the comfort of your own home or business in the space of just a few minutes. As previously mentioned, it is becoming increasingly difficult to receive funding from traditional lenders, but obtaining finance with SME Loans is generally easy to qualify for, and we work hard to maintain our impressive approval rate for clients.
Our Simple Qualifying Criteria:
- Be registered in the UK
- Have been actively trading for a minimum of 6 months
- Have a monthly turnover of at least £5,000
- Have a business owner over the age of 18 years.
- Be a limited company and/ or a sole trader.
A perfect credit score is not necessary in order for your application to be accepted. With our merchant cash advance you will be assessed on the number of card sales your business processes monthly, so it is highly likely that your application will be approved. Within as little as 24 hours, you will have the funding you require in your account, allowing you to invest in the very best equipment for your business.
Step By Step Application:
Click on the application page. To ensure we match you with the best lender for your asset financing, we will ask for more information about your business. Please be ready to tell us:
- The name of your business
- The number of years you’ve been trading
- Your average monthly card sales / monthly turnover
- The amount you are looking to borrow to cover your equipment purchases
You will then be directed to the next step, where you will be asked to disclose:
- Your title, first name and surname
- Your position in the business
- Your email and telephone number
Carefully read through the terms and conditions, if happy, click ‘get my quote’. From here your application will be processed and reviewed by one of our approved business finance suppliers, who will help you find the correct lender for your equipment loan.
One of our account managers will be in touch by phone or email to discuss the terms of your loan or advance agreement.
After carefully reading through the terms of agreement, please sign the relevant documentation and return to the lender. You will then be able to access the funds in your account in just 24 hours.