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Every business needs a line of credit, just in case...visit www.creditlineinfo.com

How to buy equipment with a business line of credit - why it's better than a business equipment loan

If you can pay off the line of credit quickly then a line of credit will be cheaper

A Line of Credit is already preapproved ready to go

There is some equipment that cannot be financed like custom made equipment

Some equipment loans have really expensive costs if you miss or delay making a payment

Equipment loans will go on your personal credit report and will lower your credit score

If your business is newer, you might have a hard time with credit worthiness to be approved for an equipment loan

Equipment loans often require a large down payments

What’s the difference between a equipment loan and equipment lease

Equipment loans are a fixed payment, and you take title from day one. There is no buyout at the end. You pay taxes for the full purchase price.

Equipment lease are not rentals. You are required to pay the full term and you can’t turn the equipment back in. Leases might have other costs involved like required service contracts, taxes, insurance and other costs.

Buying used equipment sometimes cannot be financed

You might get a lot better pricing if you tell the vendor you will pay cash. Some vendors get increase commission if you finance which is always through another company

If you had a great year financially you can write off all the interest for the credit line in the same year

A busines line of credit might give you a cheaper and more flexible monthly payment

Secured verses unsecured business lines of credit

Commercial bank verse Alternative lender

Having a business line of credit is just a smart decision. Cash back up plan.