Small Business Equipment Financing

Whether or not equipment is considered a fixture, is a critical consideration when evaluating a request for an equipment loan.  As collateral for a loan, equipment is typically movable. If the equipment is to be permanently and legally affixed to real property, it must be considered a fixture.  Equipment and fixtures owned by the borrower are listed as capital assets on the balance sheet under fixed assets where they are depreciated over time.  An example of a fixture is a pizza oven bolted down to the floor of the restaurant.  Equipment not considered a fixture includes earth-moving equipment of a road contractor, the harvesting machinery of a farmer, or the office furniture of an insurance agency.

Printers, copiers, computer equipment and other items are necessities in the modern office environment. Advances in communications and portable computing devices can allow greater productivity for employees. For construction companies, necessary equipment may include bulldozers, cement mixers and other tools of the building trade. Cloud computing service providers may require extensive banks of servers to manage the data storage needs of their customers. Regardless of the industry, the right business equipment can make a significant difference in the profitability and productivity of the enterprise. Financing small business equipment can be a challenging undertaking for small business administrators. Small business equipment finance arrangements can be applied to leasing or purchasing equipment outright. Depending on the type of equipment and finance arrangement required, these loans may be secured with the equipment itself or with other forms of collateral that are mutually agreed upon between borrower and lender. Real estate holdings, company vehicles and other assets of the company may be used as collateral to finance small business equipment purchases. When making a determination regarding small business equipment finances, lenders typically look at the credit history of the company and its projected ability to repay the loan as agreed. Recent financial records and documentation are often required by lenders in order to give fair consideration to the funding request.

CNF Exchange is an outstanding resource for companies seeking small business equipment financing. The process is simple and straightforward; companies can simply upload their funding request along with any required documentation directly to the CNF Exchange online site. Health care providers, technology firms, construction companies and small businesses in many other industries can quickly receive responses to their lending request through the CNF Exchange website. This rapid turnaround time can provide significant advantages for companies looking to finance small business equipment to improve their chances of success in the competitive marketplace.