Representative example: Chelsea buys new equipment for her salon
Chelsea owns a beauty salon and has been in business for over 10 years. She wants to replace all of her dated pedicure chairs – with the newer, luxury model costing $5,000.00 a chair. She will need to buy 10 chairs to replace the old ones, which means she needs to come up with $50,000.00. Chelsea currently only has $5,000.00 available to spend on the new chairs, however a lender has told her she only needs a 10% deposit to take out a secured equipment loan.
Before accepting the lenders offer, Chelsea heads online to compare a range of lenders. She is able to get approved for an equipment loan with competitive terms since she has been in business for a long time and has strong personal credit.
Cost of 10 pedicure chairs | $50,000.00 |
Loan type | Equipment loan |
Loan amount | $45,000 |
Interest rate (APR) | 9.00% |
Loan term | 4 years |
Additional fees | Origination fee of 1.00% ($450.00) |
Monthly payment | $1,119.83 |
Total loan cost | $54,201.69 |
*The information in this example, including rates, fees and terms, is provided as a representative transaction. The actual cost of the product may vary depending on the retailer, the product specs and other factors.