If you need to buy new equipment for your business, do you know what kind of financing options are best? In most cases, a standard lump sum isn’t going to be the best choice because of high interest rates and strict repayment options.

Instead, it’s often better to get equipment financing. These loans are based on the value of the items being purchased. Usually, the equipment serves as the collateral. Because of the way that this financing is structured, you can get approved faster, even if you don’t have a long credit history. At Anchor Business Funding, we make it easy to get the materials you need to run your business as efficiently as possible. Call us today to find out more about this process.

In some cases, it’s far better to lease equipment than it is to buy it outright. When you own the machinery or vehicles, you’re responsible for maintenance and upkeep. Not only that but if you want to upgrade to a newer model, the old equipment may not provide enough funds to make the exchange viable.

If you’re concerned about the costs of ownership, equipment leasing may be a better choice. This type of financing allows you to get high-quality machinery for a low monthly rate, rather than borrowing a lump sum up front. Also, once the lease expires, you can upgrade to newer and better equipment if necessary. Call us to find out more about the different lease options.

If you already own high-value equipment, you can leverage each piece for fast cash with a lease buyback. This process works by selling the machinery or vehicles to a leasing company, which gives you money up front. Then, the same company leases the equipment back to you for a monthly rate.

Lease buybacks are perfect for getting cash on hand to manage other operational expenses. Also, you still get the leasing benefits, including a reduced cost of ownership and the ability to upgrade to newer models at the end of the lease. Depending on how much you can sell your current equipment for, you may even be able to buy new machinery outright.

Although an equipment loan can be beneficial, the loan terms may not always be in your favor. For example, if you had to borrow money to start your business with high-quality equipment, the interest rates and repayment schedule might be costing you a lot in the long run.

With equipment refinancing, you can renegotiate your loan terms by paying it off and getting a new one. Since you will likely have a better credit history and more sales on your record, you can get more favorable rates and terms. At Anchor Business Funding, we can put you in touch with a vast network of refinancing specialists that will help you get the best deal for your company.

One of the most significant problems with standard loans is that they can take a long time to process. If you’re a relatively new company, financing can be even more of a challenge. Unfortunately, when you’re trying to capitalize on a new project, you can’t afford to wait to close on a standard loan.

Thankfully, we can help you secure a hard money equipment loan instead. This option allows you to borrow against the value of either your equipment or property. Best of all, you don’t have to own these items to get financing. These loans typically charge interest-only payments at first, with a balloon repayment at the end. Because of this structure, we recommend hard money loans only when you’re waiting on a project to come through. Call us for more details.