2. Why is it good to Use Equipment as Collateral ?
When your business needs a particular funds for equipment to get started or reach the next level, a small business equipment loan could be the correct move. You can use equipment financing to buy almost any kind of business equipment, from computers to cars and everything in between. How much you can borrow depends on the type of equipment you’re purchasing and whether that equipment is new or used, since it actually serves as collateral to secure your loan. If you’ve ever had a car loan, you’re already familiar with the idea: The price of that equipment precept the amount and terms of your equipment financing, and you won’t need to put up any additional collateral. And here’s a good thing to know: Most equipment loans are made at fixed interest rates commonly between 8% and 30% with set term lengths, so you can expect the same payment each and every month.