Office Equipment Financing can be secured for a broad range of assets and equipment types ranging from office furniture to electronic equipment and even leaseholds.
Some manufacturers and suppliers of office equipment will provide financing programs to move their product with rates that are typically lower than what is available in the general market place. But for situations where third party commercial equipment financing is required, there are both loan and lease financing options to consider.
While all industries typically will require some amount of office equipment, lenders will tend to focus their programs towards certain industries, with lower risk industries receiving stronger financing options that others. For instance, the medical profession is mostly a service industry with office equipment being the primary asset in some cases. But because of the strength of the earning potential of doctors and the lower levels of business failure compared to other industries, banks and leasing companies will extend more credit to medical businesses even going so far to finance the leasehold improvements which don’t really hold any security value for the lender.
For smaller businesses, financing is approved mostly on credit once again due to the low security value of most office equipment assets. This results in smaller companies being capped at certain amounts by leasing companies in particular. If more equipment financing is required than any one lease company can provide, the risk can be shared with leases from more than one lessor.
Its also common place for office equipment purchases to involve several pieces of equipment. Multiple items can be included in a single loan or lease facility.
Office equipment loans provided by banks and institutional lenders and typically are part of a government insurance program that incentives the lending institutions to provide financing for small business equipment in general. Loan rates are typically going some of the lower cost offerings you will come across for equipment financing.
From a lease perspective, office equipment financing may be done through an operating lease or a capital lease. An operating lease allows the lessee to return the assets to the lessor at the end of the leasing term without further obligation to pay while a capital lease requires the lessee to purchase the assets at the end of the lease for a nominal, predetermined buyout amount.
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