Small businesses in Canada account for 98% of all businesses operating in the country and employ 8.4 million people. it is vital that the country grows and nurtures the independent sector. But do you know how to finance your small business startup or grow an existing one?
One way is through lending tailored specifically to the equipment your business needs. Read on as we discuss equipment loans for your company.
Equipment Loans and Leasing
It is important to know the difference between leasing and loans. While both have similar outcomes, they have fundamental differences. The main is that leasing is not a loan and will not appear on credit reports.
Terms for a lease can last for three, seven, or even ten years. They can offer flexible terms and you may even be allowed to upgrade or change equipment over the payment period. They come from specific leasing departments in companies depending on the equipment needed.
Loans can come from a variety of lenders, much like any bank loan. They act much like a traditional loan itself, and qualifying depends on your previous credit history and what you want to buy. The equipment itself can often be used as collateral to secure the loan.
Equipment Financing Pros and Cons
A good equipment financing company in Ontario will be able to talk you through the process and decide if this is the right choice for you. However, there are a few considerations you can make before taking out an equipment loan.
The pros are that equipment loans can help you build business credit. As they are often for smaller amounts, this can help later down the line should you need more investment. If you also opt for a secured loan, they can be a very affordable choice.
Crucially, they allow you to get the equipment you need. This can help your business start or even grow.
Financing has very few downsides. As it is a loan, it is obviously more expensive than saving up and buying the equipment outright.
Paying back the loan may also cut into your business finances. If you can not make the payment, you may find it damages your credit rating or even closes your business.
How to Get Equipment Loans
Like any loan, the better your credit is, the more chance you will have to qualify. It may help if you try to improve this in advance of applying for the loan. If you already have a business, showing a steady flow of income and proving you can repay will also help.
Companies that offer personal loans in Ontario may do equipment loans, or you can contact a company that advertises as having specific experience in them. Be it trailer and RV loans in Ontario or marine equipment, you are sure to find someone to assist.
Where to Get Business Equipment Loans
Now you know what to look for in equipment loans, you just need to shop around. Don’t go with the first offer, but see who gives the best deals. An equipment financing company in Ontario is easy to come by, but you need a package and loan that suits you are your business.
Your first stop should be All-Pro Financing. We aim to get financing that is as unique as you are. Contact us here to apply today and get the money your business needs.