Computer hardware financing is a growing segment of the equipment financing market. Even though the actual asset can offer little in the way of hard security value to the equipment financing companies due to the speed with with technology can go out of date, there is still a tremendous volume of computer hardware going into the market every day. Lets face it, every business now a days requires computers. And with the average purchase price for most businesses being under $50,000, the computer equipment financing process is more focused on existing cash flow of the business and its credit profile than what the computer hardware being acquired is going to be worth in a couple of years.
And even with larger purchases well above $100,000, there are still computer hardware financing options out here. Larger amounts, however, will require stronger balance sheets and established cash flow to offset the risk of loss to the financing company.
Another reason why computer hardware financing is becoming more readily available is that it allows equipment financing to build up a clientele that will come back again and again for more computer equipment purchases in the future as well as other assets the business may require.
In terms of computer equipment financing amounts, an equipment lease or loan can be arranged for a purchase or acquisition as low as $1,500. Equipment loan or leasing facilities can also combine multiple items into one financing facility. And if a small business requires more financing than any one leasing company is prepared to give them, they can also split up their purchasing requirements among leasing or lending companies provided that the borrower or lessee has a strong enough credit profile to support the overall level of depth.
Equipment loans are typically provided through institutions that participate in some sort of government sponsored loan insurance program. Equipment leases can come from a variety of sources, each with their own requirements with respect to credit history, cash flow, and corporate or personal guarantees to the leasing facility.
Equipment leases can also come in the form of an operating equipment lease or capital lease, depending on your cash flow and/or taxation requirements.
If you have any questions regarding computer hardware financing, give us a call and we’ll make sure all your questions get answered.
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