Scottrade Bank Equipment Finance
Scottrade Bank is currently expanding its Equipment Finance division. They offer a variety of opportunities on our careers website. Scottrade Financial Services, Inc. is the private holding company for Scottrade, Inc., a leading online investment services company.
Equipment Finance Scottrade Bank is a provider of online retail banking products and services, commercial loans, and commercial equipment financing. Scottrade Bank was formed in 2008 to provide banking products and services to Scottrade clients.
Scottrade Bank Equipment Finance was launched in 2013, providing equipment lending, leasing, and financing products and programs to vendors, captives, and business customers in a variety of industries.
Scottrade Financial Services, Inc. is based in St. Louis, Mo. Deposit products and services are offered by Scottrade Bank, FDIC Member. Scottrade Bank provides a professional team-oriented environment and atmosphere focused on delivering exceptional service, products, and value to customers.
To learn more about Scottrade Bank,
visit https://www.scottradebank.com/ and for more information about the Scottrade Bank Equipment Finance division, visit https://www.scottradebank.com/EquipmentFinancing.html.
Understanding Equipment Finance
Equipment Finance is an important part of business operations for several reasons. First, for start-ups or early-stage companies, equipment financing may be an important step in running a business.
Second, because equipment financing is typically used to acquire expensive equipment, the resulting debt obligation constitutes a significant financial commitment. Therefore, business owners or company executives should carefully consider each equipment financing plan and try to get the best financing terms.
There are two main options for Equipment Finance: getting a loan to buy equipment or leasing equipment. Whichever option may be best for your business depends on several factors, such as your business’s credit rating (which affects the interest rate at which it can borrow money) and the expected life of the equipment being financed.
Buying Equipment on Loan
When you acquire business equipment by using Equipment Finance to purchase it, the equipment serves as collateral for the loan. Thus, the lender holds a lien on the equipment and can take it over if the borrower fails to make loan payments.
Because there is substantial collateral for the loan, a bank or other lender may be willing to lend up to 100% of the value of the equipment; however, loans of up to 80% of the value of the equipment are more common.
Therefore, even with Equipment Finance financing equipment, borrowers may need to make a sizeable down payment. A business owner should carefully examine their ability to make loan payments.
If they doubt their ability to keep up with payments, leasing equipment may be a better option. Loan terms for business equipment range from a few months to 10 years or more.
Interest rates for Equipment Finance equipment vary widely – ranging from 4% -5% to 30%. The main determining factors are the credit rating of the business or business owner, how long the business has been in operation, the length of the loan term, and how well the equipment purchased is projected to retain its value.
One of the main benefits of buying equipment, not leasing, is that when the equipment loan is repaid, the business has a valuable asset. If a business needs to borrow money for other purposes, such as expanding business operations, previously purchased equipment can be used as loan collateral to obtain more favorable loan terms.