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Small Business Equipment Financing - Everything you need to know about small business equipment financing - The payments will not outlast the usefulness of the equipment.

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Every small business needs cash at some point, and sometimes small business equipment financing is the only way to stay ahead of the game when it comes to technology. In many cases, equipment financing for small businesses comes in the form of a lease, and there are several benefits to obtaining financing to cover new equipment.

The payments will not outlast the usefulness of the equipment.

One of the most attractive things about small business equipment financing is that the payments on the equipment are generally matched to the expected life of the equipment. This means that in most cases, small businesses won’t be making payments on equipment that isn’t useful any more. Also this method of financing usually requires little, if any, down payment on the equipment. It also means that small businesses are covered for 100 percent of the cost of the equipment.

Small businesses get the benefits of using the equipment without taking on the risks of owning it.

Small business equipment financing is also a very attractive option because the business gets all of the benefits of actually using the equipment and none of the risks of owning it. Technology just naturally breaks down sometimes, and when you are leasing a piece of equipment instead of owning it, then it is easy to get the equipment replaced if it breaks.

There is a very nice tax write-off involved with small business equipment financing.

Leasing equipment also provides a great tax write-off for small businesses, which can deduct all of the lease payments on the equipment on their taxes. Compare that to being able to only write off the interest on a small business loan, and it is pretty clear that leasing may be the way to go.

The application process is usually very simple.

Many companies that provide small business financing for equipment will approve applications in just minutes or hours, so there is virtually no waiting for the money. There are even options for small business equipment financing for business owners who do not want to go the route of lease payments. They can either use their business property as collateral on the loan, or they can choose a small business loan without any collateral. Of course the no-collateral loan usually comes with much higher interest rates, but it may well be a viable option for some small business owners.

There are several different places to find small business financing.

No matter what kind of small business loan you need, there are plenty of lenders out there to help out. Each lender may specialize in a different kind of loan, so be sure to do your homework before signing on the dotted line. Banks often prefer to have some kind of collateral when it comes to small business loans, while online lenders may be a little more open to leasing equipment. Either way, just remember to check several different interest rates on various options before choosing a lender.

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