The interest rate on an equipment loan is between 2- 20% of the acquired loan… And the payment of interests is based on a monthly, quarterly, annual, or biannual basis, depending on the terms of the lender.
Occasionally, a certain percentage of the cost of the equipment may be required as a down payment – often up to 25%!
For a business owner trying to purchase a piece of equipment for his business, there are actually equipment loans that can help fund a certain percentage of the total cost of the equipment.
For example, let’s say the equipment you wish to purchase for your business costs $300, your equipment loan can actually pay for 70% ($210) of the cost of the equipment, leaving you with just $90 to pay.
This kind of equipment loan usually attracts a lesser interest rate.