WELCOME [ Log In · Register ]        SITE [ Search · Page Index · Recent Changes ]    RSS

Equipment Loans

Equipment loans are long-term debts that enable companies to borrow the money needed to purchase fixed assets including equipment and fixtures. Typically, the borrower will make a down payment and then the remaining balance will be amortized over a specified number of months with equal monthly payments made to retire the principal and interest owed on the loan.  Equipment loans are said to be paid on an installment basis.  Typically, the lender is a secured creditor and takes a security interest in the fixed assets acquired with the proceeds of the loan.  As a general rule, the length of the loan repayment schedule will not exceed the estimated useful life of the fixed asset. 

© 2010 by Michael C. Dennis.  All Rights Reserved.