somewhere i read something about equipment financing. i but don't get exactly what is it. so, i share here. can someone tell me what is equipment financing.
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Equipment financing is (as term implies) loans specifically for the purchase of business equipment and uses the equipment as collateral. Therefore the value of the equipment is one factor in determining the amount of the loan.
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Equipment financing is obviously a category under financing but its importance varies from business to business. The basic meaning of this type of financing is to invest or get investment for the infrastructure that will be required in establishing or running a business. In most cases outside investors just give the money and become a part of the profit sharing irrespective of the type and quality of product you purchase from the market. This practice is usually considered beneficial as profit sharing is not harmful and saving of amount by the establishing person can be used in other work.
Equipment finance usually involves lenders writing business loans that are secured by items of apparatus instead of land. Lenders don't usually write instrumentality loans for shoppers though in some states loans accustomed finance star panels are on the market to each businesses and shoppers.