Equipment finance is a pretty self-explanatory term. It’s a form of capital equipment financing where a business takes out a loan or lease agreement to get the equipment or physical assets you need – whether it’s a long-term purchase or a short-term lend.
From a delivery van to commercial ovens or even specialist machinery – some businesses who can’t afford the upfront cost of expensive physical assets may consider equipment financing as the solution that’s right for them. It’s a popular option too.
Finance and Leasing Association statistics show that businesses and public sector organisations secured finance worth £32.6bn to support investment in new equipment during 2018. And that accounts for over a third of UK investment in machinery, equipment and software that year.
Much like a traditional bank loan, the cost of the equipment (or loan amount) is typically paid back over an agreed number of months – including interest. While it may seem like a flexible approach in the short term, the long-term considerations can be anything but.
That’s where we come in.
Our Business Cash Advance is the business equipment financing option that provides flexibility throughout. It helps you in the short term to make expensive capital purchases, but also gives you long-term peace of mind knowing that you’ll only pay back when your customers pay you.