Equipment Financing vs Equipment Loans: What are the key differences?

Business and the need for finance go hand-in-hand. The reasons may vary- from working capital to expansion plans to daily operational costs and overheads, the need for additional funds could be for anything. Several self-employed professionals and small and medium enterprise (SME) owners also find themselves in need of finance.

Equipment Financing vs Equipment Loans

If you are a business owner who needs to purchase or upgrade equipment for your business or private practice (dentists, medical labs, etc.), then Equipment Financing is the route to take. You can avail of this convenient loan option that comes with varying tenures, to deal with any need for extra funds. Also, in case you need money for other business-related purposes or otherwise, your equipment can also work as collateral/security to secure a loan, an option termed as an Equipment Loan.

Difference between equipment finance and equipment loan

When talking about equipment loan vs equipment finance, one is a mortgage loan option (where existing business equipment is pledged), while the other is a loan to purchase new equipment. A handy finance option, Equipment Financing comes to the rescue when SME or large business owners need extra cash to add or upgrade their machinery or business equipment, to further their growth and expansion.

Read more on how to get a Machinery Loan here.

At HDFC Bank, you can avail of different Equipment Finance products. You can opt for a Commercial Construction Equipment Finance or Healthcare Medical Equipment Finance, the choice is yours. We offer loan products designed to suit your different needs, at competitive interest rates and with flexible repayment tenures. An entire range of equipment can be purchased with HDFC Bank Commercial Construction Equipment Finance, while Healthcare Medical Equipment Finance options are best-suited for buying standard medical equipment like CT scanners, colour dopplers, sonography machines, MRI machines and X-ray machines, among other things. You can also apply for a Business Growth Loan to get you started.

*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.