Here are some reliable resources to finance major equipment purchases – Boca Raton’s most trusted source of information
Most businesses need equipment to operate. Equipment is an integral part of the life of every business. Whether you run a small online business or a large-scale physical store, you will need equipment in one form or another.
Getting the equipment you need can make your life easier. However, equipment is expensive and sometimes you find yourself looking for reliable equipment financiers to cover this aspect for you.
What is equipment financing?
As a business, you may not have access to the kind of money to buy equipment on a large scale. What are you doing then? Are you missing important equipment just because you don’t have the funds? No.
You are looking for Equipment Financiers.
In equipment financing, lenders lend money to finance large purchases of equipment. It’s like a loan that can be repaid over time and usually involves a certain percentage of interest.
Equipment financing is a more attractive alternative to equipment leasing. Unlike equipment where you either have to renew your contract or return the equipment after the period has elapsed, in equipment financing you get equity in the equipment.
Equipment financing allows you to borrow 100% of the value of the equipment you need. It’s like a loan that you pay back over time. This equipment loan gives you access to tens of thousands of dollars in equipment without any upfront payment from your business.
Equipment financing options
Banks have a long enough process for loans in place and you may not even be successful sometimes. With finance companies and lenders, your chances of getting approved are considerably higher.
To help you find the best possible equipment financing option for you and your business, we’ve done extensive research. Here’s a guide to your options when looking for equipment financing:
The zero down payment is one of the more lucrative options. It allows you to take out equipment loans when you don’t have the savings to support them.
No Down Payment is a fan favorite among companies that need financing to meet their equipment needs. Thanks to the equipment, you can reap the benefits directly without parting with your capital.
Of course, when you don’t make a down payment, the lender is taking a significant risk. This is why the approval of the zero down payment usually involves:
- Excellent credit rating.
- High interest rates.
- Higher and hidden equipment costs.
Just like traditional loans, you pay a certain amount over a set period of time until your financing is fully paid off. Depending on the lifespan and ease of use of your equipment, a business should try to secure a short-term loan to ensure that it does not make payments on equipment after it has been dead for a long time.
Good to excellent credit
With a large credit, you automatically climb to the top of the list of eligible applicants for equipment financing. Having good credit gives you an edge over everyone else. It shows that you are quite capable of paying the loan amount whenever required.
Having good to excellent credit means you have access to:
- The best equipment lenders.
- Excellent options for equipment financing.
- Lower interest rates.
If you think that you might not be using the equipment after a certain period of time or if you work in a business where the equipment becomes obsolete over time, it is better to rent the equipment instead of buying it. .
That way, you’re free to rent newer gear and don’t get stuck with gear that you have virtually no use for. It is a waste of space and capital.
Bad credit reflects badly on a business. With bad credit, you may need to do additional work to get approved. The best thing to do is to prepare yourself in advance, even if you don’t need equipment financing. Do your research so that your business does not have to suffer the consequences.
When you have bad credit, consider making up for it by:
- Equipment rental.
- Work with banks or finance companies with which you already have a relationship.
- Offer additional guarantees.
- Pay more deposit.
- Use of a co-signer.
Obtaining equipment financing for startups is not easy. Banks and lenders tend to stick with applicants who have a business background and a healthy income stream. However, some lenders can provide you with reliable equipment at a fixed monthly payment to be paid over time.
You may be eligible for a start-up equipment loan if:
- You have a credit score of 600+
- No bankruptcy in the last 7 years
- Business license
When buying equipment, it’s best to do your research. You don’t want to apply for a loan and then research your options. This can cause you to pay more for the equipment than if you had researched beforehand.
The finance industry is competitive. Most businesses with a credit score or income can access premium offers and lower interest rates. Equipment financing is a cost effective way to buy the equipment you want without investing the capital required to do so.