If you are looking for a financial instrument that will provide funding to your business, then you can choose Equipment financing. It provides the funds to the business owners so that they can purchase new machinery or upgrade the existing machinery. The business owners or the enterprises that avail benefits of the equipment loan enjoy the tax benefits too. There might be a slight difference in the interest rates, loan amounts, etc. There are certain additional options too that are linked with equipment leasing, making the arrangements, etc. The loan tenure may also differ from one bank to the other bank.
What are the eligibility criteria? Elaborate it here briefly.
Certain eligibility criteria are given by the banks. People are told to know it positively. The first is that the individuals who are from the corporates, partnerships, of the private firms can participate. The minimum age should be 21 years when they will apply for the loan. The company should be the case of making a profit from the last three years and is consistent in the business field. The income tax return statements should last for two years. These are the eligibility criteria that everyone should know.
What are the documents required for an equipment loan?
An equipment loan is a major factor of Equipment financing and certain documents are required while you apply for it. They are taken to verify the details and then you can access the loans. The documents are ID proofs, KYC documents, and the details of the address will be required. The business address proof is also required. You will have to give a bank statement for the past six months. You will need a passport size photo of the applicant. You would also require the income tax returns and the details of the suppliers will also be required.
What are the benefits of equipment financing?
Some of the benefits of Equipment financing are illustrated here. Some lenders will offer up to 100℅ finance or maybe low than that. The equipment finance that will be offered by banks are mainly unsecured loans and are collateral-free. You will also get approval pre-time and the procedure will not take much time. There is an option of flexible loan that is given to the customers as per the budget. The interest rates are also competitive that are offered and it will depend on the repayment history. It will also depend on the creditworthiness of the borrower.
What are the types of equipment loans?
There are many types of equipment loans. The loans are given to the business owners and depend on the enterprises. There is a manufacturing equipment loan, office equipment loan, construction equipment loan. This loan is given to the persons linked to construction purposes.
The manufacturing loan is given to the people who are manufacturing the goods and also expect profit in their business. The corporate aviation loan is given for the aviation industry and can be used at airports.