Equipment and Vehicle Loans for Your Small Business
Every business needs different things. A photography and a home cleaning business have very different needs, but they both rely on the right equipment to get the job done. Whatever your needs, we can help you finance them. For cameras, cleaning equipment, delivery trucks, and everything in between, TFNB can help.
Read on to find how these loans can benefit your small business. Or, if you’re ready to apply for your next loan, contact our commercial lending team.Contact us to get started
Commercial Vehicle Loans in Waco
A commercial vehicle loan is a financing solution used to buy vehicles for your business.
A commercial car loan saves your company’s valuable cash reserves. Steady monthly payments make it easy to afford that much-needed truck, car, or van. Just like a personal vehicle loan, you pay back the loan in regular installments of the principal amount . You’re also responsible for any accumulated interest over the length of the loan.
The average commercial auto loan term is about 5 years but can vary.. At TFNB, our local bankers can provide customized financial goals. Whether you want to pay off loans faster or reduce your monthly payments, we can customize a loan for you.
Equipment Loans in Waco
You can use equipment loans to buy business-related equipment. This includes new computers, refrigerators, video equipment, and more. Like commercial vehicle loans, equipment loans require periodic payments (including interest and principal) over a set number of months.
For example, if you open a food truck, you will need lots of kitchen equipment to get started. Let’s say the commercial deep fryer, stovetop, and refrigerator you need costs $25,000. If you apply for an equipment loan for 75% of the equipment’s cost, or $18,750, your out-of-pocket costs are only $6,250. An equipment loan helps get your venture up and running faster by distributing costs over time.
For a secured loan, the lender may need a lien on the equipment as collateral against your debt. After you pay the loan in full, you own the equipment free of any lien.
It’s important to note that equipment financing is not the same as equipment leasing. In a lease, you pay the owner of the equipment “rent” for use of the equipment over a length of time. At the end of a leasing term, you return the equipment to the owner, unless you negotiate a sale or lease extension. But with equipment loans, you own the equipment at the end of your term. It can be easier to qualify for a lease, but if equipment is vital to your business, buying it through a loan may be a better long-term financial decision.
How do I qualify for commercial loans?
We aim to help Waco’s small business community thrive by making loans more accessible to you. We may look at any of the following to determine what loan terms are best for you:
- Your personal credit score
- A business plan (detailing plans for future growth)
- Statement of revenue
- Balance sheet
- Cash flow statement
These items help our lending team get a better picture of your business’ finances. Once we understand what you need to succeed, we can make sure it’s also affordable.
Apply for an equipment or vehicle loan now.
Give your business the right tools to succeed. It’s easier when you finance the purchase with TFNB! To get started, fill out the form below and a member of our team will be in contact soon.