Get a Equipment Loan Today!
A loan or lease specifically for the purchase of business equipment, where the equipment itself acts as collateral for the loan.
LOAN AMOUNT:
Up to 100% Value
TERM:
Est Life of Equipment
TIME TO FUNDING:
As few as 48 Hours
INTEREST RATE:
8 – 20%
About Equipment Loans
A loan or lease specifically for the purchase of business equipment, where the equipment itself acts as collateral for the loan. Car loans and leases are a form of Equipment Financing.
Calculator Information
The Finance Calculator calculates the type of repayment required, at the frequency requested, in respect of the loan parameters entered, namely amount, term and interest rate. The Product selected determines the default interest rate for personal loan product. The Finance Calculator also calculates the time saved to pay off the loan and the amount of interest saved based on an additional input from the customer. This is if repayments are increased by the entered amount of extra contribution per repayment period. This feature is only enabled for the products that support an extra repayment. The calculations are done at the repayment frequency entered, in respect of the original loan parameters entered, namely amount, annual interest rate and term in years.Calculator Assumptions
Length of Month
All months are assumed to be of equal length. In reality, many loans accrue on a daily basis leading to a varying number of days interest dependent on the number of days in the particular month.Number of Weeks or Fortnights in a Year
One year is assumed to contain exactly 52 weeks or 26 fortnights. This implicitly assumes that a year has 364 days rather than the actual 365 or 366.Rounding of Amount of Each Repayment
In practice, repayments are rounded to at least the nearer cent. However the calculator uses the unrounded repayment to derive the amount of interest payable at points along the graph and in total over the full term of the loan. This assumption allows for a smooth graph and equal repayment amounts. Note that the final repayment after the increase in repayment amount.Rounding of Time Saved
The time saved is presented as a number of years and months, fortnights or weeks, based on the repayment frequency selected. It assumes the potential partial last repayment when calculating the savings.Amount of Interest Saved
This amount can only be approximated from the amount of time saved and based on the original loan details.Calculator Disclaimer
The results from this calculator should be used as an indication only. Results do not represent either quotes or pre-qualifications for the product. Individual institutions apply different formulas. Information such as interest rates quoted and default figures used in the assumptions are subject to change.Business Loan Calculator - Estimate Your Monthly Payments with Cashifi
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Calculator Disclaimer
The repayment amount shown using this calculator is an estimate, based on information you have provided. It is provided for illustrative purposes only and actual repayment amounts may vary. To find out actual repayment amounts, contact us. This calculation does not constitute a quote, loan approval, agreement or advice by My Finance. It does not take into account your personal or financial circumstances.
Get your loan estimate today!
- Machinery and vehicles for a farming operation
- Milling machinery for manufacturing
- Heavy equipment for a construction company
If you’re ready to start but still don’t know who to work with, turn to Cashifi!
We utilize our expansive network of vendors and a relationship-driven approach to get your business the funding it needs when you need it.
Frequently Asked Questions
Equipment financing comes in two basic forms. First, qualifying businesses can borrow funds to purchase necessary equipment, everything from bulldozers to barbeques, where the equipment itself serves as collateral for the loan, much as with a car loan or lease. Or, with a Sale Leaseback Agreement, you may be able to borrow money against equipment you already own, and use that cash for expansion or other needs.
Equipment Financing goes by a number of different names. It’s also known as an Equipment Finance Agreement (EFA), Capital Lease, Finance Lease, or $1.00 Buyout (because you can buy the equipment at the end of the lease for one dollar or similar small cash payment). In fact, most equipment leases have a Fair Market Value (FMV) residual, a fancy accounting term that just means you’ll need to make a lump cash payment at the end of the lease if you want to keep the equipment.
There are a number of different types of Equipment Loan available:
Step-Up Step-Down
Do you run a seasonal business or a business where profitability is subject to market trends?
A Step-Up Step-Down loan allows you to adjust payments so you pay more when business is good and less during slow times.
Quarterly Equipment Lease
If your business runs long term projects, or simply doesn’t function on a financial month-to-month schedule, quarterly payments may be the answer.
Re-financing
Many leases have a payout at the end of their term, which you may not have the cash to cover. There are also situations where a slowdown in business or a freeing of capital for expansion or special projects may require a refinance. Alternatively, business may be booming and you might want to shorten an existing lease term to reduce losses to interest payments. Finally, an improvement in your credit rating might allow you to negotiate a better lease rate.
Sale Leaseback
A sale leaseback agreement allows you to sell existing equipment you already own to a lender for a lump sum cash payment at current fair market value. You then lease back the equipment, keeping it for your operations while accessing funds for other needs.
Fair Market Value Lease
Does your business rely on equipment with rapidly updating technology, such as the latest generation of computers or robotic vehicles and equipment? A Fair Market Value lease allows you to defer some of the purchase price to the end of your lease term. You then have the option to purchase the equipment at current fair market value, continue lease payments or return the equipment to the lender and upgrade to new equipment.
Lease or Loan?
There’s a common perception that loans are better than leases due to the terms but this is not always the case. There are times when a lease makes good financial sense as lease payments can be written off as an operating expense.
While equipment financing is sometimes the only option for startup or expansion, it can also be a great investment when capital exists for this purpose but could be put to better use elsewhere. Since the loan is secured against the equipment itself and often has no down payment, and you’re not out of pocket for your purchases, you might find that making the interest payments on this kind of loan can actually increase profitability by allowing you to invest your available cash in areas of your business that will give a better return.
Equipment also has upkeep costs, requiring regular maintenance and occasional repair. Equipment financing may allow you to replace your aging equipment with new equipment for less monthly outlay then maintaining your existing equipment.
Finally, there can be significant tax savings as payments may be deductible, in full or in part, depending upon the equipment and structure of the loan.
Big Think can advise and assist you with finding the right kind of Equipment Loan for your business.
Benefits:
- Quick access to cash
- Limited paperwork
- Equipment serves as collateral
- Lukewarm credit OK
Drawbacks:
- Down payment may be required
- Depreciation will reduce tax deductions
- May have large buyout at end of term
- Equipment subject to obsolescence
- Minimum Credit Score: 600
- Minimum Time in Operation: 11 months
- Minimum Revenue: $100,000 annually
