Want to finance equipment, but worried about the down payment? If you are a newly established business, getting the down payment arranged to buy an equipment may be hard for you. When many businesses just like yours are struggling with inflation, expanding your inventory or affording the next commercial equipment to boost productivity is a top priority.
Many businesses, especially startups and newly established ones may lack the cash reserves to make a hefty down payment. Depending on the lender, there are choices for keeping costs low and obtaining equipment.
Some alternatives to down payment include:
- 100% financing
Well-qualified customers with a good credit score and credit history may be eligible for 100% financing. This implies there is no need to make an initial payment for the equipment. Obtaining financing with no money down frees up cash for operating expenses and investments in critical areas of your organization. However, start-ups, new businesses, and/or those with bad credit may be unable to obtain full finance.
- Trade-in Equipment
Do you have equipment that you no longer need? Businesses that use the trade-in value as a down payment boost their equity in the new equipment right away. This can result in more attractive offers for equipment financing in Abbotsford.
The value of the traded-in equipment is applied to the purchase price of the new equipment, substantially lowering the amount of money required for the down payment. This makes the getting hands on your choice of equipment more inexpensive and reduces the financial burden on the company. To get started, contact your equipment dealer to receive a trade-in quote. When applying, make sure to include this in the comments. Finance the remainder to purchase equipment with a reduced monthly cost.
- Step Payments
Step payments may be used to reduce the amount required for the down payment. Unlike standard financing structures, which have the same payment each month, step-down payments are greater at first and drop over time. This option allows us to offset the financing charges, resulting in lower monthly payments for the majority of your loan.
Allow your business time to scale up, train staff, save money, and network. Depending on your needs, your first 3 to 6 payments may be larger or smaller than the subsequent stream of payments.
Conclusion
So, these were some financing options for down payments you can consider before applying an equipment financing application. To make sure you make the right choice, talk to your local equipment financing expert who can guide you on how to secure the ideal financing deal for expanding your business equipment.
Sandhu & Sran Leasing & Financing is your trusted choice for equipment financing and leasing in Abbotsford. With years of industry experience, we can help you find the best deal and obtain a flexible payment for your company based on your credit history and goals. Get in touch with us to find out more about the flexible financing choices available.
