If you need to buy or replace your Mac computers, equipment loans can provide the financing you need. Here’s how an equipment loan works.
Mac computers have a strong reputation for being innovative, reliable pieces of equipment. They do wonders for your business whether you need to stock your office with design and communication tools or if you need a Mac desktop to handle all of your client interactions.
Whatever it is that you’re using a Mac for, you need to know you can count on it every single day. If you find yourself down a Mac due to hardware damage, malware, or theft, you need to come up with a replacement solution right away.
Thankfully, that’s what equipment loans are for.
Keep reading to discover more about this handy financial asset and how it can help your business recover from the loss of a Mac.
What Is an Equipment Loan?
An equipment loan is a financial asset available to businesses that need to upgrade or replace their equipment. It’s basically a very specific type of small business loan.
This is available to a wide range of businesses. Restaurants can use it to update their kitchen or dining equipment; gyms can use it for new free weights and machinery; delivery or catering services can apply the funds from such a loan to the purchase of new company vehicles, and so on.
As far as buying a Mac goes, this may be the best way to go about funding your purchase. With the help of an equipment loan, you can get the computer(s) you need in a short amount of time, without having to worry about your company budget or risk falling behind on daily operations.
The Benefits of Funding Business Expenses with Equipment Loans
Why wouldn’t you just take out a small business loan for your new Mac?
Is it possible to take out a personal loan?
Should you follow the steps on Bonsai Finance to get a personal loan instead?
These are a few alternatives you may consider when the time to buy another Mac comes around. But, the truth of the matter is that no loan is going to be as fast and as beneficial as an equipment loan.
Here are 3 of the top benefits of equipment loans that you can enjoy if you decide to take this route when purchasing your new Mac.
- Fast Turnaround
Equipment loans can typically be processed in as little as 2 days. This means you can have your new Mac on-site and ready to go within a week! It allows you to go straight from problem to solution without skipping a beat, which does wonders for your company’s productivity.
- More Cash-On-Hand
One of the more unique things about equipment loans is that they do require a 20% down payment. So, if the Mac you want to buy costs $3,000, your loan would be for $2,400 and you’d be responsible for funding the remaining $600.
However, this is a much better alternative than having to cough up $3,000 of your business’ savings all at once. The loan gives you the ability to purchase the equipment you need right now and hold onto the cash-on-hand you plan to use in the future.
- Tax Deductible
The final benefit of using equipment loans to pay for a new Mac is that it’s tax deductible. Technically, you can deduct your loan as well as your Mac.
This is because the loan’s payments can be considered a monthly expense for your business. The Mac could then be written off as a one-time purchase of equipment.
How to Apply for Equipment Loans
It’s one thing to understand everything that equipment loans can do for you, and another to know how to apply for this kind of funding. There are a few specifics to be aware of with equipment loans that are unique from other borrower applications.
Here’s the easiest way to complete your application and improve your chances of being accepted.
- Check That You Qualify
As great as equipment loans are, they aren’t available to anyone. Your business needs to be in good credit standing, which means you can’t have any history of bankruptcy. Even defaulted payments or low capital may put you in danger of not having your application accepted.
You also need to be able to process consumer credit card payments, and ideally, have a business that’s older than a year old. Additionally, be prepared to put down 20% of the Mac’s value up front. This is standard for most equipment loans – lenders loan you 80% of the costs and you pay the remainder right away.
- Explore All Your Options
Don’t apply for the first equipment loan you come across. Take your time to research different lenders and compare the conditions of the loans they offer you. This will help you avoid high APRs, and it can keep you from borrowing more than you actually need, too.
- Read the Fine Print
Just when you think you’ve found the perfect loan, make sure you double check the fine print. The last thing you want is to end up in a bad situation because you rushed the borrowing process.
Make sure you understand all the payment requirements and how the collateral will be collected if you don’t hold up your end of the agreement. These are the seemingly minor details that can make a big difference in your entire company’s operations if you’re not careful.
Buy New Macs, Tablets, iPhones, and More!
Equipment loans can be used to buy new Mac computers or laptops as well as tablets and iPhones. You can even use them for the purchase of iWatches or laptop cases and accessories if you can justify these things as business expenses!
But, you should try to keep your borrowing to a minimum as much as possible. Only apply for an equipment loan when you absolutely need the money to make ends meet without putting your budget in danger of going into the negatives.
Whether you’re using a loan or not, click here for a few more Mac insights that will help you make the most of the money you have.
