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A laboratory equipment loan provides funds to a laboratory that is involved in research and other laboratory-related activities. These loans are designed to provide the borrower with the funds necessary to acquire laboratory equipment such as glassware, machines, burners and other laboratory equipment. This loan is a long-term loan as the equipment being purchased with the laboratory equipment loan will lose value and depreciate over time. This depreciation allows the laboratory company the opportunity to write off the loan cost over the length of the loan’s terms.
Depreciating a Laboratory Equipment Loan
The period of time in which the laboratory equipment is in use by the laboratory company is its useable life. Laboratory equipment can be expensive, particularly for a small laboratory. A laboratory business would use a depreciation schedule over the useable life of the laboratory equipment to recover its interest costs associated with the purchase or financing of the laboratory equipment. The depreciation allows the laboratory business to write down the loan’s costs as an expense item and take a tax deduction.
Laboratory Equipment Loan Interest Rates
The rate of interest that a laboratory equipment loan borrower pays will be based on their credit worthiness. This interest rate will be stated in the loan agreement, which is executed between the borrower and the lender. Good credit risk with high credit scores will benefit from better interest rates than those borrowers with low or poor credit risks. A borrower that wishes to take out a laboratory equipment loan should understand its credit rating and be prepared to securitize the loan with collateral if necessary.Credit is the lifeblood of your business, especially for small or new startup companies. BusinessFinance.com assists entrepreneurs to get started purchasing equipment, building your inventory and expanding your business.
Some important items to know to finance your :
- How much money do you really need?
- Do you know your exact FICO scores?
- How do you plan to repay the loan?
- Who is going to borrow the money? You personally or another legal entity?
- What assets can you pledge to secure your loan?