What is restoration equipment?
Restoration equipment is an umbrella term that refers to various equipment and machinery used for disaster recovery and mold remediation. Restoration equipment includes machines such as air movers, air dryers, dehumidifiers, air purifiers, moisture detectors, air scrubbers, and negative air machines.
How restoration equipment financing works
Restoration equipment financing works like any other type of financing. Personal loans, business loans, credit cards, and other types of financing allow business owners to finance major expenses over time by paying back the total amount of their purchase in more manageable monthly payments – plus interest. The specifics on how the loan works depends on the type of loan. For example, if you use an installment loan such as a personal loan it should be funded as a lump sum and repaid in equal monthly payments.
Types of restoration equipment
There are many different types of restoration equipment that are used in the day to day operation of a fire, water and mold remediation company. While not an exhaustive list, the major types of restoration equipment include:
- HEPA vacuums
- Moisture meters
- Air scrubbers
- Dehumidifiers
- Odor control equipment
- Water and flood extraction
- Air movers
- Dryers
- Air purifiers
- Negative air machines
In addition, remediation companies utilize a wide variety of chemicals and supplies such as sprayers, personal protective equipment (PPE), ducting, and poly sheeting to get the job done. All of this equipment and inventory can be expensive, which is why it is good to have options for financing.
Options for financing restoration equipment
​​Consumers and business owners have several options for financing their purchase of restoration equipment. Some of the top choices include:
Business Loans – Business loans are often one of the best options for providing businesses with an influx of cash for one-time purchases. Interest rates tend to be lower than any other type of financing (unless you can score a credit card with a 0% APR promotional period) and you can borrow larger amounts of funds than with a personal loan. However, business loans do come with some red tape and can take up to 90 days to fund. When you need cash in a hurry, a personal loan might be the better option. If you do decide to take out a business loan, look for loan programs backed by the Small Business Administration (SBA) for the best rates and deals.
Personal Loans – Personal loans offer consumers a number of benefits such as competitive interest rates, easy application requirements, loan amounts of up to $100,000, and the ability to receive your funds within 1-2 business days in many cases. There are little to no restrictions on how you spend your loan proceeds, and the application process is relatively quick and painless. For businesses just starting out personal loans may be the answer for funding.
Credit Cards – If you have them, credit cards can be one of the quickest ways to finance your major business purchases. When planning for a major expense such as the purchase of restoration equipment, it may be beneficial to shop around for a new card that can offer you a 0% APR introductory period. As long as you pay off the balance within this timeframe, you may be able to avoid paying interest altogether. Look for business credit cards for the best terms
Home Equity Financing – If you have a personal property with some equity, you can utilize various forms of home equity financing such as a home equity loan or a home equity line of credit (HELOC). These financing options may come in handy for some consumers, but they also come with a higher risk. If you default on the payment of your debt – you could lose your house.
In-House Financing – The vendor where you plan to purchase your restoration equipment may offer their own payment plan or financing program for consumers to take advantage of. If the interest rates are lower than other financing options you considered, this may be the best deal.
Why should you consider obtaining a restoration equipment loan?
Obtaining a restoration equipment loan can help you start your own remediation company or take your restoration business to the next level. Here are some of the reasons you should consider getting a loan:
Low interest rates – Personal loans and business loans have lower interest rates on average than using credit cards in most cases. (The exception to this is if a card has a 0% APR introductory period)
Affordable monthly payments – When you don’t have the funds available to pay in cash up front, taking out a loan allows you to spread out the cost of your purchase over time.
Create opportunity for business owners – Whether you are starting a new business or expanding your existing one, having the option to finance your business purchases can be the difference between your company succeeding or failing.
Benefits of restoration equipment financing
Using financing for your purchase of restoration equipment can allow you to get the equipment you need without depleting cash flow. By taking out a loan or using credit, borrowers are able to spread out the cost over time and pay a low monthly payment instead of cash up front. Financing may also provide the opportunity for you to buy better quality equipment that will last longer.
How do I qualify for restoration equipment financing?
To qualify for restoration equipment financing, lenders typically want to see that you have a decent credit score, and may require documentation for the business such as a business plan, financial statements, profit and loss sheets, and business license. Every lender and each loan have different requirements and qualifications, so it pays to shop around and consider several different loan programs. Businesses may need to shop lenders to find one that they qualify for. This is where the Internet comes in handy. At PrimeRates, you can check business loan offers with no impact to your credit score.
Do I need to have a good credit score to qualify for a restoration equipment loan?
Although minimum credit score requirements vary from lender to lender, most financial institutions will want to see a credit score of at least 660 in order to ensure your qualification for financing. In addition, having a higher credit score gives you access to the best interest rates. So while you can still find many lenders who are willing to approve applicants with less than ideal credit, you can expect to pay for it through higher interest rates and fees.
How to finance restoration equipment
There are a number of ways you can finance your restoration equipment purchase including credit cards, personal loans, business loans, home equity loans and lines of credit, or in-house financing.
When you are in the market for restoration equipment or any other business purchase, you should be sure to compare interest rates, fees and financing terms for the various financing options you consider.
Also take a look at the monthly payment you can expect to receive and make sure you can afford to pay.
Conclusion
In conclusion, when you are ready to begin shopping for your next restoration equipment purchase, it pays to consider the different types of financing and their advantages and disadvantages. Businesses can often benefit the most from taking out a business loan, especially via an SBA-backed loan program.
At PrimeRates you can explore various types of loans and check offers. Within minutes you can find the loan that is right for your business, all with no impact to your credit score. Offers will be based on information you submit, therefore, they should accurately represent what you qualify for. No bait and switch.
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