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Repair or replacement of the old equipment, can create a serious burden on your business cash flow. However, there is a number of financing options available on the market that can help you cover your immediate equipment repair expenses.
At Smarter Loans, we connect you with a plethora of equipment repair and upgrade loan lenders, offering the most affordable rates and loan terms. We’ve successfully helped countless other businesses acquire the financing they need to repair or upgrade their equipment. View the table below to access top Canadian loan lenders and select the best financing option for your business needs.
Once you are ready to proceed in applying to one of these equipment repair loan providers, click “Apply Now” beside their name. Alternatively, if you feel that you do not have ample time to tackle this research, pre-apply with Smarter Loans and we’ll handle the selection for you.
We can help connect you with the top equipment repair financing providers in Canada.
Business owners are well-aware how costly equipment maintenance can be. Fortunately, it is relatively easy to apply for a loan to upgrade or repair your equipment. An equipment upgrade/repair loan can be used for any physical equipment needed for your business to remain functional, from complex manufacturing apparatus, to computer systems, to furniture. Equipment upgrade loans can be used to repair existing equipment, after a malfunction or breakage, or to upgrade instead of buying new equipment. This is useful for businesses that have older equipment or whose equipment has a short lifespan.
As with other small business financing options, equipment upgrade and repair loans require the borrower to qualify for the loan; this usually includes covering 20% of the equipment cost yourself, with the other 80% covered by the loan. Unlike with a lease, businesses will own the equipment from day one, and the equipment itself is used as collateral for the loan.
When equipment repair is needed, many businesses seek financing to upgrade or repair the item in question. Loans for small businesses are often the simplest and most affordable route to maintaining an up-to-date, smooth-running operation, and equipment upgrade loans can be used for any physical equipment upgrade needed for this purpose.
Some items may need upgrading simply because they are old and worn, while others wear out quickly, or become obsolete.
Let’s take a look at some different types of equipment that an equipment upgrade loan could be used for:
Applying for financing to upgrade equipment in Canada starts with understanding your business’s needs: what equipment needs repairing or upgrading, its value, and what you need to replace it with. These factors, as well as the type and size of your business, will affect your loan. The next step in equipment financing is to find a reputable lender who is able to help you; most lenders have similar eligibility criteria, which include a minimum downpayment and good credit. Some lenders, including online lenders, have less strict credit requirements, but will instead examine your company’s sales. Once you have found a lender, you must then complete their application, before you pursue any equipment upgrades.
Most equipment repair or upgrade loans require a proportion of the cost of the equipment as a downpayment – typically around the 20% mark. However there are options if your business has no money to put down. You may have to provide a greater level of collateral against the loan, or pay a higher interest rate.
Equipment repair and upgrade loans come in a variety of sizes, and businesses may be eligible for anything from $5000 upwards, depending on financial circumstances and needs. In Canada, equipment repair loans represent the largest proportion of business assets financed by external lenders.