Lethbridge is the fourth largest city in Alberta and is a great place to be if you’re looking to establish a business. Unlike a lot of other towns in the prairie province, much of Lethbridge’s economy revolves around health and education services, rather than farming and agriculture.
However, any business in those fields requires just as much, if not more reliable equipment to function with efficiency and success. The only problem is that most equipment can certainly cause you to stray outside of your business budget, so a loan is often necessary to make everything more affordable.
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What Type of Equipment Can I Purchase?
In general terms, an equipment loan is a lump sum of money that you can acquire through various kinds of lenders.
There are the more common prime and subprime lenders who can deposit the money directly into your business bank account, give you a cheque or send you an e-Transfer. You can even find specialty lenders that deal exclusively in equipment loans and can send the funds straight to the equipment wholesaler or retailer.
Depending on where you apply and how much money you’re approved for, an equipment loan can then make all sorts of equipment more affordable because you can finance it through installments. This is a huge asset, considering how pricey some tools, technology, and vehicles can be.
An equipment loan can help you purchase items such as:
- Computers, printers, and other office implements
- Ovens, deep fryers, and other kitchen appliances
- Heating, ventilation, and air conditioning units
- Trucks, tractors, and other vehicles
- Gauges, hoists, and another auto mechanical machinery
- Cranes, jackhammers, and other construction equipment
How Can an Equipment Loan Expand My Business?
In this day and age, it’s scarce to find any business operation, whether small, medium or large scale, that does not require some type of equipment to get the job done and see a decent profit. As we mentioned, the main function of an equipment loan is to make that equipment more cost effective by allowing you to finance it over time.
That said, affordability certainly isn’t the only benefit that an equipment loan can provide you with. As a matter of fact, there are a ton of different ways you can both build and expand your business with this type of financing on your side.
An equipment loan can also help you:
- Purchase heavy machinery
- Replace outdated or damaged equipment with brand new pieces
- Purchase second-hand equipment (if you can’t afford new items yet)
- Finance multiple pieces to increase business productivity
What Businesses Are Eligible for Equipment Financing?
As we said, most present-day businesses can need the proper equipment for things to run smoothly. The good news is that almost any industry professional can qualify for an equipment loan, as long as you, the potential borrower, are well prepared for the application process and can show your lender a detailed business plan.
Not only will strong financial health help you secure a larger amount of financing, but it can also earn you a lower interest rate, making your equipment loan even more affordable.
Although health and education services are two of Lethbridge’s main industries, there are plenty of other businesses that can surely benefit from the right equipment financing.
Other businesses that require reliable equipment include (but aren’t restricted to):
- Dental practices and laboratories
- Factories, shipping locations, and warehouses
- Hospitals and medical facilities
- Restaurants, bar, and nightclubs
- Hair, nail, and beauty salons
- Gyms and fitness centers
- Private law firms and office environments
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Can I Use My Commercial Assets to Borrow?
Another great benefit of owning the proper machinery, vehicles, and other commercial assets is that you can often use them to secure additional financing. That’s right, if your lender inspects your equipment and determines that it has some residual value, they may allow you to leverage it as security in exchange for another loan.
Commonly known as asset-based financing, this new loan would also come as a lump sum of liquid cash and is even cheaper than regular unsecured financing because the lender has some collateral in the event that you default on your upcoming payments.
With this additional financing, you continue to help your business by:
- Investing in advertising strategies
- Training and hiring new employees
- Stocking your shelves with new inventory
- Renovating or expanding your current work location
- Purchasing and staffing additional spaces
- Purchasing standard health and safety gear
Note – By choosing this type of financing, you’ll be agreeing to give your lender temporary ownership over your assets, which may be at risk of seizure if you miss too many payments. Only apply for asset-based financing if you’re ready to handle the financial responsibility of your upcoming payment plan.
What Are the Main Benefits of Equipment Financing?
To summarize what we’ve learned about equipment loans in Lethbridge, we’ve provided a list of the main benefits that accompany this type of financing. Once you’ve read them through, you’ll hopefully have an easier time deciding whether or not this service is what your business currently needs.
The benefits of an equipment loan in Lethbridge include (but aren’t limited to):
- The ability to formulate a proper budget and choose the best pieces of equipment for your business needs.
- The opportunity to apply with a lender that specializes in your field and understands your financial requirements.
- The chance to secure an affordable and customizable payment plan, which can be stretched out over several years if necessary.
- Best of all, you’ll know where your money is coming from and will be able to focus on the needs of your business.
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Interested in an Equipment Loan?
If you’ve been hunting for reliable and cost-effective equipment financing in Lethbridge, we have some good news, because you’ve discovered the Loans Canada network! We can connect you with the best lenders, rates, products, and business financing solutions in your area. Get started today!