We Make It Easy to Refinance Your Equipment Loan
March 23, 2022
Companies depend on equipment loans to acquire specific equipment and machinery they need for their business to flourish. Unfortunately, businesses often end up with unfavorable loan terms and large monthly payments, making it harder to pay down debt or achieve future success.
Businesses can enjoy a better loan experience and the freedom to pursue growth through equipment loan refinancing with Texas Gulf Bank. Learn about the benefits that come from refinancing equipment loans, and how our bank makes refinancing easy so that your company can focus on other business priorities.
The Benefits of Refinancing Equipment Loans
Equipment refinancing offers several important benefits to companies that rely on heavy machinery and specialized equipment for their business operations.
1. Debt consolidation. Refinancing provides companies with the opportunity to consolidate their existing loans into one manageable payment, simplifying their bookkeeping process. Instead of juggling multiple payments and interest rates, companies can use refinancing to pay off existing lenders and direct their efforts to pay down their primary equipment loan.
2. Reduced monthly payments. Through refinancing, companies may have a much lower monthly payment due to better interest rates and/or improved loan terms. Smaller monthly payments give companies financial stability while paying down their loan. They then have the ability to apply the savings to other capital expenditures.
3. Access to equipment equity. Over time, the value of equipment can remain high or even increase, creating significant equity for borrowers. By refinancing equipment loans, companies can convert their equipment equity into cash and use those funds for future expansions, to pay down debts or taxes, or build up their company savings.
4. Transition from leasing to ownership. Companies that use equipment leasing for their business can end up with unfavorable and complex lease conditions, such as large balloon payments. As a result, you can find yourself in a financial position where you are unable to fully own the equipment at the end of the lease. Equipment refinancing can help your company smooth out the transition from leasing machinery and equipment to full ownership, saving you money while strengthening your company’s financial standing.
5. Available for all types of equipment. Equipment loan refinancing can be used for all types of heavy machinery or specialized equipment. Whether you’re in manufacturing, production, transportation, construction, or another industry, you can take advantage. Businesses can use refinancing to ensure they have all the equipment needed to achieve higher levels of success and reach company goals.
6. More positive lending experience. With Texas Gulf Bank, companies have a more positive lending experience by working with a bank that focuses on building relationships with customers. We are a community bank that partners with Texas businesses to look at your business needs holistically, not just another transaction.
How Texas Gulf Bank Simplifies Equipment Loan Refinancing
Our bank has decades of experience supporting companies with business loans and commercial banking services. Companies interested in refinancing existing equipment loans through our bank will have the opportunity to find flexible loan options that meet industry-specific needs for their company.
We offer a simplified refinance process to provide your business with the opportunity to thrive and expand through cost-effective loan solutions. To begin the application process, your business will need to provide:
- Historical financial information
- Profit & loss statements
- Corporate tax returns
- Personal financial statement and tax returns for owners to guarantee the note
- Completed refinancing application
- Equipment information including dates of service, maintenance, business usage, and current market value
In addition, refinancing loan terms need to match up with the projected useful life of the equipment and machinery. For example, companies interested in refinancing equipment with a shorter life span may end up with a shorter loan term for repayment than companies refinancing equipment and machinery with a 15-to-20-year life span.
On average, equipment loan refinancing may take a few weeks to complete. However, businesses that are already Texas Gulf Bank customers may experience an expedited refinancing process because we already have many of your documents on file. That’s an added value of building a relationship with our bank!
Consider Additional Business Banking Services
Businesses that choose to refinance equipment loans through our bank may also be interested in the vast array of commercial banking services and loan solutions that we make available to our customers. Our business banking services can include:
- Lines of credit for working capital and inventory to expand your purchasing power and help meet customer demand.
- Vehicle loans to expand delivery or transportation services.
- Real estate construction loans for building facilities or additional locations.
- Treasury Management Services to manage your banking needs.
Texas Gulf Bank is a proud partner of businesses across the region. We strive to provide the best possible banking experience for business owners so that you can focus your energy and attention on new areas of growth and success.
Companies that choose to work with Texas Gulf Bank benefit from a business relationship built on trust, experience, dependability, and strength. Contact Texas Gulf Bank today to discuss refinancing your equipment loan. Discover the benefits of a better lending experience.
All Loans Subject to Credit Approval