Business loan secured by equipment

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The microcredit company VAYVND issues microloans to individuals online and in branches.
The microcredit company FinaGuru issues short-term and long-term online loans to individuals. The organization does not have a branch network; it operates remotely via the Internet.
Creditnice is a microfinance company operating since 2013. It specializes in loans with online processing, including to pay for purchases from partners; it also issues virtual credit cards and provides credit lines.
Creditify is a service for issuing urgent online loans to a bank card. You can take out a loan on a card from this company for various purposes. Income certificates and guarantors are not required.

Features of loans secured by equipment for legal entities and individual entrepreneurs

If the company does not have real estate or transport that could be pledged to the bank to obtain financing, obligations can be secured with liquid equipment and special equipment. This will allow you to develop your business without withdrawing a large amount from circulation. In most cases, such a collateral is accepted when applying for a long-term investment loan. Funds are issued for a specific purpose:

  • Acquisition of expensive fixed assets (real estate, transport, equipment)
  • Construction of buildings or premises for business
  • Repair or reconstruction of property
  • Business development
  • Refinancing a loan from another bank issued for similar needs

There are several requirements for the collateral:

  • Purchasing from an official dealer who has been working in this field for at least several years
  • Wear and applicability within acceptable limits
  • High liquidity of property
  • Registered ownership


How much can you expect?
A loan secured by equipment for individual entrepreneurs and LLCs can be taken out for an amount of up to $1,000,000 or more; the value of the collateral itself is important. Some programs provide for receiving a small amount of several million rubles without collateral. A collateral assessment will be required at an additional cost.

What happens if you don’t pay the loan?
At the first stage, the bank will try to resolve the issue through negotiations and offer a new repayment schedule if the client has financial difficulties. If the debt is not repaid for more than 3-6 months, the case is referred to the court, according to its decision, the collateral must be sold to cover the debt. Also, a legal entity is liable with its property, and individual entrepreneurs and guarantors – individuals – with personal property.

Which bank is better to contact?
First, it would be wise to submit an application to the bank where the entrepreneur or organization is serviced. In this case, a smaller package of documents will be required; all the main ones have already been provided when opening the account. In addition, the lender already sees all the financial flows and potential of the borrower. Special offers and discounts are available for existing customers.

Are guarantors needed if there is a deposit?
Most banks request a guarantee from business owners and individual entrepreneurs, regardless of the presence of collateral. This allows you to additionally secure loan obligations. The lender may not impose such a condition; it all depends on the program.

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