Equipment financing is a method of funding equipment for your business by getting an equipment loan.
Oftentimes when running a business you may need to purchase new equipment or have to upgrade to better equipment for better processing and production to facilitate the startup.
A startup laundry company that needs to purchase a modern industrial washing machine that will make their services stand out among their competitors.
As a startup, it’ll be quite difficult to afford to pay for this equipment and still pay for their shop rent. This is where equipment financing comes in handy!
The startup can choose to finance the purchase by going for an equipment loan from traditional lenders such as banks or other non-traditional lenders.