What is Equipment Refinancing?
Equipment refinancing is a type of asset-based lending where a business’s working equipment serves as collateral for the loan. It is a financial tool used to convert long-term assets into cash in hand. The purpose of refinancing is typically to obtain a significant injection of working capital or to restructure debt. Refinancing can be used to fund growth, meet immediate financial obligations, support a turn around strategy, or consolidate multiple loans, making it more efficient to manage debt and improve financial stability.
OTHER TERMS BEGINNING WITH "E"
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) is a measurement of a company's financial performance and current operating profitability. It is calculated using a company's net earnings, before interest expenses, taxes, depreciation, and amortization are subtracted.
- Employer Identification Number (EIN) Certificate
An employer identification number (EIN) is a nine-digit number assigned by the IRS. It's used to identify the tax accounts of corporations, employers and other types of tax paying entities. The IRS uses the number to identify taxpayers who are…
- Equipment Financing
Equipment financing is a type of business loan designed specifically for purchasing machinery and equipment essential to running your business.
- Equity Financing
Equity financing is a funding process where a business owner sells shares of the company in return for capital. These funds can be used for short-term needs such as to pay bills business operations or long-term growth.