Equipment financing is a loan that businesses secure from a corporate lender to buy expensive equipment. This is because they lack sufficient funds to purchase it outright from their suppliers. The businesses then use the capital asset to carry on their manufacturing or commercial activities.
However, the lenders usually keep possession of this equipment as a security until the businesses repay their debt. After doing so, the asset belongs to them. Businesses can consider this financing scheme to be similar to a long-term mortgage. They have to make a down payment and pay regular monthly installments to their financiers.
Sertant Capital – How can this popular loan scheme work and benefit businesses?
Sertant Capital is a popular independent finance company operating from its headquarters in Irvine, California. It specializes in offering equipment finance and other similar corporate loan schemes to small businesses.
The qualified professionals of this corporate enterprise ensure its customers get customized loans to suit their needs. Sertant Capital also ensure the businesses can process the schemes without any difficulty in the shortest possible time. This ensures their owners get the funds they need to expand their operations in the market. Many of them are grateful for the services of these experts as they can focus on their business growth and not stop expansion due to lack of equipment.
The qualified experts here say many businesses may show a lot of interest in equipment financing. With funds from this loan scheme, they can buy the capital asset necessary to conduct their activities. Only then can they meet the demands of their customers in the market and generate sufficient revenue.
However, they need to know how the scheme works and benefits them. Businesses first need to find a reliable corporate lender specializing in equipment financing. They have to find out the different loan schemes; this financier is willing to offer them. Then the businesses select one and ensure its conditions meet their specific needs. After making the necessary down payment, the businesses can use the equipment for their activities.
These specialists state businesses can enjoy the following six benefits when they opt for suitable equipment financing schemes:
- Equipment financing saves businesses from using cash funds to buy the capital asset,
- This loan scheme enables businesses to avail attractive deductions which reduce their overall tax burden,
- Unlike other traditional loan schemes, businesses find equipment financing does not have any hidden charges,
- Equipment financing allows businesses to acquire capital assets which they cannot afford to purchase outright,
- With this loan scheme, businesses can protect themselves from financial losses resulting from inflation, and
- Most corporate lenders specializing in equipment financing have a hassle-free application process.
The qualified professionals of Sertant Capital conclude by saying equipment financing can help businesses boost their productivity. With this loan scheme, they can acquire capital assets to meet their customers’ demands and generate revenue. The businesses can also keep their cashflow intact and remain immune to financial losses resulting from inflation. Almost all of them become eligible to claim tax deductions on the payments they make to their corporate lenders thanks to equipment financing.