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Although Brampton used to mainly be known for its booming greenhouse industry, the town is now home to plenty of other major sources of commerce, such as advanced manufacturing and communication technologies. While these industries are different in many ways, they are alike when you think about how much equipment they need to function properly.
The only issue is the cost of such items which, depending on what kind of equipment you want, can certainly be out of your initial budget. If that’s the case for your business, it may be time to consider an equipment loan to help you finance those items over time.
Looking to Expand Your Business?
If your goal is to purchase the right business tools, vehicles, and/or machinery, then equipment financing may be exactly what you’re looking for.
Essentially, this service allows you to apply for a lump sum of money through the lender of your choosing. Once you’ve acquired the loan (typically by direct deposit, cheque, or e-Transfer), you would use it to buy the items you need, then repay your lender over time through equal installments with interest.
Though some business owners would prefer to apply through their local bank or credit union, there are also many alternative third-party lenders in Brampton that specialize in equipment financing and can pay your chosen wholesaler on the spot.
Proper equipment financing can also help you:
- Get rid of unreliable or outdated equipment
- Replace those unwanted items with state of the art pieces
- Purchase multiple items to boost productivity and revenue
- Improve the health of your business credit report and credit score
- Use your equipment to borrow additional business financing in the future
Want to Use Your Equipment to Borrow?
As mentioned, the main reason to apply for an equipment loan is that it allows you to finance otherwise unaffordable items over time. Depending on where you apply, how much you’re borrowing and how qualified you are, your repayment plan may last for several years worth of monthly, semi-monthly, weekly, or bi-weekly installments.
After you’ve completed your plan and paid off all the costs associated with the loan, you will become the lucky owner over the title of the vehicle, device, or machine that you bought. As soon as that happens, that piece of equipment then becomes a commercial asset that you can use as collateral when applying for additional business financing in Brampton.
The more residual value your collateral commands upon inspection, the more likely you’ll be to receive approval for a large amount of financing, a more affordable interest rate, and more adjustable terms for your repayment plan.
With this new business-style loan, you can continue to improve and expand your business by:
- Making additions, repairs, or renovations to your current work area
- Leasing or purchasing real estate for new work locations
- Hiring and training sufficient staff
- Paying your bills, license, and other Ontario business fees
- Investing in the most effective marketing strategies
A Word to the Wise When Using Collateral
By offering collateral, you’re giving your lender an insurance policy for the unlikely event that you default too frequently on your upcoming installments, which is why they would be more willing to approve you for more favourable business financing. This is more commonly known as “securing” your loan.
As beneficial as this new capital may be to your operation, you must always proceed cautiously when it comes to a secured loan, as your lender will retain ownership over your equipment until you’ve paid all costs as agreed. Too many late, short, or missed payments could result in your asset(s) being seized, so only offer collateral if you truly have room in your budget.
Will My Business Qualify for an Equipment Loan?
While some industries are more in-demand than others in a town like Brampton, any kind of business can be made eligible for equipment financing, as long as you, the owner can prove that you’re qualified to handle the payments you’ll be making.
If you have a good track record of paying your previous debts, no recent delinquencies (bankruptcies, etc.), a good business income, and a realistic business plan, you shouldn’t have much trouble qualifying for a decent amount of financing.
All this said, some businesses will obviously require more equipment than others.
Equipment financing would be highly useful when it comes to any of the following industries, many of which can be found in Brampton:
- Food & Beverage Service
- Private & Corporate Law
- Auto mechanics
- Heath & Education
What Are the Other Benefits of an Equipment Loan?
Realistically speaking, running your own business is not an easy or cheap thing to do, whether your operation involves a small office with a few computers or a full manufacturing center filled with vehicles and heavy machinery.
Don’t worry, because an equipment loan in Brampton comes with plenty of other benefits that range beyond general affordability, such as:
- You’ll have the freedom to choose a lender that understands your industry and reports your payment activity to Canada’s main credit bureaus.
- Any installments you complete will look good on your business credit report and gradually increase your credit score.
- Any legitimate lender can detail all the financing costs in advance, which will help you modify your budget accordingly. Check out which three financial statements can help you operate your business better.
- As long as you have good financial health and discuss your financial needs openly, most lenders will offer you a customizable repayment plan.
Not to mention that with enough financing under your belt, you can easily purchase the most expensive pieces of equipment on the market, including but certainly not limited to:
- Ovens, freezers, and other kitchen appliances
- Computers, desks, and other office implements
- Forklifts, assembly lines, and other factory machines
- Tractors, grain feeders, and other farming devices
- Trucks, cargo loaders, and other shipping vehicles
- Steamrollers, bulldozers, and other construction vehicles
Equipment Financing and Loans Canada
If you’re in search of the best equipment loans in Brampton, don’t forget that the Loans Canada network has your back. We’re always here to connect you with the best alternative lenders in your area.