Starting a business or upgrading your business equipment can cost a pretty penny. Sometimes it can be more than what you have available in the capital, but purchasing this machinery will help increase your business. Instead of waiting until you have the capital, why not utilize a 504 loan? At 504 Capital we provide equipment financing loans in Virginia, Maryland, and North Carolina. We have helped hundreds of businesses grow, let us help you.
Using a 504 Loan to Purchase Heavy Machinery and Equipment
Is your business looking to upgrade its equipment? Trying to convert to a more green energy system? Need to jump start your business with the maximum amount of capital? A 504 loan may be the best option for you.
The Small Business Administration (SBA) works with private lenders to guarantee loans to small businesses. One of these loan options is the 504 loan which can be used to make real estate and heavy equipment/machinery purchases.
Eligible Machinery and Equipment
One of the main ways businesses capitalize on the 504 loan program is by purchasing equipment and machinery that will increase their productivity and expand their services/product line.
For example, a construction company may be looking to expand their service offerings, so they want to purchase a bulldozer. The company does not currently have the capital to outright purchase this piece of equipment, but they know that purchasing would be more beneficial for their business in the long run.
As a result, they decide to finance their purchase through the 504 loan program. This program would allow them to purchase any type of hard asset with a lifespan of at least 10 years. This would include:
- New or used machinery and equipment
- Installation of new or used machinery and equipment
- Construction equipment
- Manufacturing equipment
- Large format printers
- Medical/dental equipment
- Commercial Laundry Equipment
- Equipment that generates renewable energy or fuels Etc.
An extensive list of equipment eligible for the SBA 504 equipment loans in Virginia, Maryland, and North Carolina, is available when you contact a team member at 504 Capital.
Why Choose a 504 Loan?
So, as you can see, there is a lot of potential for your business to thrive with the help of a heavy machinery loan in Maryland, Virginia, or North Carolina. But, you may still be wondering—why should I choose a 504 loan over a different type of loan? Well, unlike traditional loans and other SBA loans, the 504 loan offers:
- Up to 90% financing
- Below-market, fixed interest rates
- A low down payment
- 10-year loan repayment terms
With these benefits, it is easy to see how a 504 loan would be beneficial for your business. It would allow you to maintain working capital, keep your payments low, and give you time to pay back the loan amount.
Get an Equipment Financing Loan in VA, MD, and NC
Are you ready to boost your business’ profits and break into new service areas? An SBA 504 equipment loan in Virginia from 504 Capital may be the way to go. Our team of experts is here to assist you with the application process and guide you through it. We work hard to find the best loan solution for your company and provide you with the counseling, support, and loans that help your business grow and thrive.