Company Equipment: To Purchase Or Not To Purchase

The SBA 7a loan has been getting a lot of press lately, as it is one of the most viable commercial mortgages out there, and many business owners are trying to get a better understanding of the loan program. Below are the typical questions that business owners have regarding the SBA 7a loan.

Obviously, we must invest in gear and personnel at some point if we hope to grow. All I'm asking is that you be very conservative when doing so. I've had as many as 7 people on my payroll and over $200,000 in equipment loans at one point in my video production business.



A borrower will be asked to secure the loan with some kind of significant collateral. Heavy machinery, equipment loan, inventory, other commercial truck financing with no money down (click for source) or residential properties owned by the borrower and even properties involved in the purchasing process can be put as a collateral against the loan.

These things are cash flow, credit, collateral, character as well as capacity. Before you choose the equipment finance company you need to make sure that you perform a good amount of research. One of the best ways to perform your research is with the help of the internet.

You will be amazed at what you can get for free on the internet. It is worth spending half a day working your way through freebie sites on the internet before buying software, graphics, backgrounds or online services. Very often you will find great resources and software for free.

Be sure to take all the time you need in choosing from the different equipment loan and lease options presented. If you are having troubles in understanding the terms and conditions, you may seek the aid of a financial advisor. These plans allow you to start your business conveniently without too much pressure on your pockets.