What Is a Construction Equipment Loan?
To answer the question in the title, a construction equipment loan is nothing but a loan taken to finance the construction equipment of a company. It is an excellent option to help an owner purchase the vehicles, machinery, and other pieces of equipment which his or her construction company requires. Some of the advantages to an equipment loan, which makes it particularly helpful to construction industry players, are as follows.
- It provides quick access to funds
- It requires limited paperwork
- The piece of equipment itself acts as collateral for your loan
- It can help build your personal credit
- It is possible to obtain a loan even when your credit score is bad
- There are many potential tax benefits related to an equipment loan purchase
This loan is similar to a car loan in that the piece of equipment you buy is the item which secures the loan. In other words, you do not have to put something else up as collateral for it. Usually, the loan you take would have an interest rate that is fixed and that falls in the range of 8% to 30%, as well as a fixed term length.