Financing Options for Purchasing Large-Scale Plastic Recycling Equipment: A New Business Guide
Starting a large-scale plastic recycling business is a capital-intensive venture, with the biggest outlay often being the high-cost processing equipment like industrial shredders, extruders, and sorting systems. Securing the right financing is crucial for a new business to launch successfully and remain competitive. This article breaks down the primary financing avenues available for purchasing essential plastic recycling machinery.
1. Equipment-Specific Financing
Since the equipment itself is a high-value, tangible asset, specialized financing options are often the most straightforward and common paths for new businesses.
Equipment Loans (Financing)
- How it Works: The lender provides a loan to cover up to 100% of the equipment’s cost. The equipment being purchased typically serves as the collateral for the loan, which often results in lower interest rates and less stringent collateral requirements on other business assets.
- Pros for a New Business: You own the equipment from day one (once the loan is paid
