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Equipment Loans Hamilton
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Written by Bryan Daly
Best Equipment Loans Hamilton (Online) September 2021
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As part of Canada’s most highly industrialized sector, the economy of Hamilton, Ontario is largely dedicated to manufacturing, particularly toward the production of steel. In fact, thanks to companies like Stelco and Dofasco, the city now produces 60% of our country’s steel. Of course, no manufacturing or production company is complete without the proper equipment.
That’s right, the steel industry isn’t the only kind of business that can succeed in Hamilton and certainly isn’t the only one that requires reliable equipment. The only problem is that most tools, machines, and vehicles are quite expensive to buy. If that’s the case for you, a good equipment loan can go a long way.
Common business financing application mistakes everyone should avoid, check this out.
When and Where Equipment is Necessary
Despite manufacturing being Hamilton’s key industry, it’s tough to come across a business in the city that doesn’t require some type of equipment to progress these days. And, whether your operation is simple as an office with a few computers or as extensive as a factory full of machinery, it all adds up.
Some of the other Hamilton industries that require a lot of equipment include, but definitely aren’t limited to:
- Food/beverage service
Since any kind of equipment can be pricey, especially new pieces, your own business may not currently have the budget to afford them. Don’t worry, because the purpose of an equipment loan is to help finance those sorts of pieces over time.
Learn how to incorporate your business, click here.
Equipment Loans Explained
Generally speaking, an equipment loan is a lump sum of money that you can apply for through various lenders in Hamilton. Once your application has been approved and your loan received, you would typically repay your borrowings over time through equally divided installments with interest. The more qualified you are to handle the resulting debt, the more funds you can potentially access, the lower your interest rate will be, and the more negotiating power you’ll have when it comes to your repayment plan.
While many business owners choose their local bank or credit union, you can also find many private and alternative lenders in town. In either case, it’s likely that the appropriate loan funds would be offered to you via direct deposit, cheque, or e-Transfer soon after your application has been approved. There are even lenders who specialize in this type of financing and can pay your equipment wholesaler first-hand.
The Benefits of an Equipment Loan:
- Affordability is not as much of a problem when financing is available
- Repayment plans can be customized and adjusted to suit your budget
- Lenders are knowledgeable and will understand your business needs
- Less worry over financing means more time and money saved
How to Expand Your Business With Equipment Financing
Remember, the best thing about an equipment loan is that it can help you afford the tools, machines, and vehicles that were previously out of your price range. With new equipment comes new possibilities for you and your business.
Here are some other ways equipment financing can bring prosperity to your operation:
- You can upgrade from outdated, damaged or otherwise unreliable equipment to the latest and greatest items.
- With the right amount of financing, you’ll have an easier time purchasing multiple equipment pieces, which can increase productivity.
- Once you’ve fully purchased a piece of equipment, it becomes an asset that can be used as collateral for future borrowing.
Using Your Equipment to Borrow
That’s right, if you already own equipment, you can now use it to borrow additional business capital, provided it still holds enough value for your lender to consider it good collateral. Feel free to leverage a truck or other vehicle, a piece of heavy machinery, or any other property that can be labeled as a commercial asset.
Essentially, if your lender finds value in your collateral, they may approve you for another type of business loan in exchange for temporary ownership over the asset in question. Known as a secured loan, this reduces the risk for the lender by giving them something to sell if in the event that you default on your upcoming payments (for more information about secured business financing, click here). As a result, you may be able to earn a lower interest rate, making the process cheaper than with a regular unsecured business loan.
With that additional capital in your bank account, you can continue to benefit and grow your business by:
- Developing an online outlet
- Investing in marketing tactics
- Hiring more employees
- Leasing or purchasing more workspace
- Renovating your current workspace
- Consolidating unpaid debts
Everything you need to know about business credit scores and reports, click here.
Financing the Right Equipment
As you know, running a business in Hamilton can be very time consuming and pricey once you factor in all the other expenses that come your way, such as licensing, property-related costs, and various taxes.
However, with the right equipment loan on your side, you can at least avoid the stress over where your financing is coming from and how you’ll be able to afford the tools, machinery, and vehicles that your business needs to maintain efficiency.
Here are just a few of the equipment types that can be made more affordable through financing:
- Farming vehicles (tractors, harvesters, etc.)
- Restaurant equipment (ovens, refrigerators, etc.)
- Construction gear (cranes, dump trucks, etc.)
- Health/safety systems (ventilation, sprinklers, etc.)
- Office technology (computers, lighting, etc.)
Equipment Loans Made Easy
Operating your own business requires a lot of time, money, and hard work. However, finding an equipment loan in Hamilton doesn’t have to be a chore, especially if you know where to look. Contact Loans Canada today for more information about the equipment financing process or apply below when you’re ready to get started.