You need to buy a new:
- Semi Truck
- MRI machine
- Other machinery, restaurant equipment, etc.
These are big capital expenses that most small to medium-sized businesses can’t afford to pay all at once.
We are back at a common dilemma: Is the only option going to the bank and trying to secure a line of credit? That’s going to be a really hard line to secure, especially if your business is newer or experiencing a growth spurt.
Total years being in business helps, but is not required for a specific type of loan: Equipment loans. The two big things the lender looks for when you want an equipment loan are your credit score, and if you’re able to make a down payment. The loan is secured against the piece of equipment itself.
You may also need to present bank statements, P&Ls, tax returns. And then show an actual invoice for the equipment purchase to prove you’re not using that fresh semi-truck money to buy an RV and visit Yellowstone with the wife and kids.
When the loan is complete, you own the equipment the same way you would own a house. In time your business owns the asset outright.