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Posted on Thursday November 29th, 2018

Every business needs to update or replace a critical piece of equipment at a certain stage to run the daily operations and have to adapt the new technology for the advancement in production. It requires lot of funds to purchase large pieces of equipment like vehicles or heavy machinery and for that you need a monetary help. So machinery loan can be the answer you are looking for. It is ideally suited for both start-ups and expanding businesses that provide fast access to the equipment you need to get your business running and growing. ShubhBank guides you to grow your business with “Machinery Loan At Competitive Rates“. This loan is used to buy business equipment that is secured by equipment itself. It means that instead of putting up any of your personal asset, you can use the item you are purchasing as collateral. Being a secured loan, if you don’t repay the loan, the lender repossesses the item. It can also be used to replace existing machinery or to buy a new one as your business grows. So the business owners with better credit rating and exponential growth can see lower interest rates that benefits on your budget. The repayment term depends upon the size of the purchase and shelf life of the machinery.

A business owner can find the equipment loan preferable instead of traditional business loan. You won’t need to provide as much documentation as they are secured by the machinery that’s being financed, so we are not nearly as concerned about your business history. We allow you to finance the 70-80% of the cost of the machinery with flexible repayment terms that can help you maximize cash flow. The loan quantum typically depends upon how expensive the equipment is, how quickly you need the loan and what’s its shelf life. We aim at getting familiar to your needs and help you to match the right loan offering that suits you best. You must have a certain level of revenues before we approve you for the financing. There are great opportunities for fast approval if your personal credit score is great. You aren’t likely to get approved the loan application if you have an open bankruptcy. Before you apply, just keep a check on that how much the equipment is going to make for you and what the other expenses are going to be surrounded by that. The more prepared you are before applying, the more likely you are to be approved and can receive the funds quickly.

Equipment financing can be a great option and how much you qualify for and what interest rates you’ll pay, all depends upon the value of machinery, your business financial history and your credit rating. The basic eligibility criteria for acquiring such a loan are to provide your credit history proving the financial health of your business with tax returns and last 6 months bank statement. The documents required are ID proof, income proof, original & valid quotation of machine to be purchased, repayment track record, audited balance sheet etc. Applying for a machinery loan at ShubhBank is typically fast and easy to purchase the machinery with limited paperwork and getting quick access to cash.