Equipment term loans can be used for new or existing equipment. A term loan is a secured financing in which the company uses equipment they own or are planning to purchase as collateral. Term loans require monthly interest and principal payments, and principal balance is typically repaid in full by the end of the term. Some term loans have balloon payments that are repaid on the maturity date.

Throughout the life of the transaction, the borrower retains ownership of the equipment and the lender is granted a security interest in the equipment.

Not sure a term loan is the right choice for your situation? You don’t have to be. Utica Equipment Finance will help you understand all the pros and cons to help you make the right decision, aligning your financing choice with your business objectives.