Equipment / machinery loan
Equipment / machinery loan is a type of business loan specifically designed to help companies purchase new equipment, machinery, or other tangible assets that are essential for their operations. These loans are often used by businesses in various industries, including manufacturing, construction, agriculture, and healthcare, to acquire the equipment they need to improve productivity and efficiency.
Terms
Equipment loans typically have fixed terms, with repayment schedules that match the expected lifespan of the equipment. Loan terms can vary but are often between 2 and 10 years.
Interest Rates
Interest rates for equipment loans can be fixed or variable, depending on the lender and the terms of the loan. Rates may vary based on factors like the borrower's creditworthiness and the type of equipment being financed.
Down Payments
Lenders may require a down payment, which can vary but is often around 10-20% of the equipment's purchase price.
