Representative example: Steven needs a new forklift
Steven owns his own small carpentry business and frequently ships out items from his warehouse. His forklift has broken and he needs to purchase a new one, but doesn’t have all of the funds on hand right now since it has been a bit of a slow season and he just had to replace one of his delivery trucks. The cost of a used forklift is $25,000.00 and Steven will need a loan for approximately $20,000.00. He plans to apply for a secured equipment loan and use the forklift as collateral.
Steven heads online to compare lenders and is able to get approved for an equipment loan with a competitive APR since he has been in business for over five years and has a strong personal credit score of 810. Although he’s only required to put down a deposit of at least 10.00% for the forklift ($2,500.00), he outright pays $5,000.00 to keep his loan costs lower.
|Cost of used forklift||$25,000.00|
|Loan type||Equipment loan|
|Interest rate (APR)||8.00%|
|Loan term||2 years|
|Additional fees||Origination fee of 1.00% ($200.00)|
|Total loan cost||$21,909.10|
*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.