7 Tips For a Successful Equipment Financing

Getting a loan or leasing to finance the equipment needed to run your company is an important step for any business. However, we know that it also can be a little scary or unknown for many owners. So we made a list of tips that will help you make a wise decision and get the most out of your equipment financing procedure.

  1. Make a Projection

Prepare to describe how the business equipment will assist your company. An equipment finance company may need a forecast of improved revenues and cost savings from the equipment's employment.

  1. Do not Apply for Multiple LeasesTips for Successful Equipment Financing with Different Companies

When a lender receives inquiries from other leasing businesses, it raises questions about why your application was rejected by others. For a better chance of acceptance choose an equipment finance company that works with your industry.

  1. Look for a Company that Offers Leasing Options Too

Businesses require equipment to expand, but some cannot afford to buy it outright or obtain financing. Work with a lender who offers you a variety of options. Can the lender assist you in comparing the cost of leasing equipment versus the cost of getting a loan and purchasing it? Work with a lender who can provide you with many payment alternatives and situations.

  1. Identify your Business’ Cycles

If your business experiences slow and busy seasons (which it almost certainly will), assess these business cycles in your financing application. Including financing choices in your annual planning allocations will help you stretch your funds during the lean periods.

Working with a financing company also has the benefit of their understanding and concessions for variable payment plans. They know your company's cycles and may provide the best financing options to make payment management easier.

  1. Make a Strong Financial Plan

This plan must be presented to the lender for an evaluation of your company's financial sustainability. The startup's future development potential and estimated yearly income should be included in the strategy.

  1. Combine Multiple Purchases of Company Equipment into a Single Loan

To make things easy and cost-effective, determine what sorts of equipment your business needs and combine the financing into one loan or leasing. If you do this, you may be able to acquire a better offer.

  1. Look out for a Local Company

When looking for equipment finance, go to your local community. Asking for sponsors in your area will almost always result in financial assistance. Local financing companies are always willing to help businesses around them, no matter their credit history. So if you’re looking for Orange County equipment financing, Equipment Financings is the best choice for you.

When working with us, you don’t have to worry about anything because we will walk you through the whole process, making each step simple and quick for you and finding the best solution to make the loan adequate for your unique needs. Choose Equipment Financings and give your business a chance to grow successfully. Get started today!

What to Consider When Applying for Equipment Financing

Having the right equipment is key for your business growth and development, you want to make sure you bring the best service and results to your customers and we know that sometimes that can be difficult when you don't have the money for it. But don’t worry, that’s what Equipment Financing is for. It’s also important to take into consideration for your business's sake what’s needed when applying. Getting funding can be a complicated task so we are here to help you every step of the way.

What are Your Plans for the Equipment?

Determine how the equipment will be used by your business and how long it will be required. This will aid in determining the lease's suitable amount of investment. Perform a basic cost/benefit analysis that compares the periodic lease payment to the income you expect to gain from utilizing the equipment to see if leasing is a viable financing option.

Experience

When applying for funding for equipment financing, one of the first things the lender need to evaluate is the businesses experience. Businesses that have been operating for years are typically more financially stable and have the right tools and practice. They are likely to be quite familiar with the many sorts of equipment that a business would employ.

What are the Total Payments and Costs for the Contract?

By asking this question, any future misunderstandings regarding the number of payments, the amount of monthly payment required, and any additional costs linked to insurance, taxes, and other fees will be eliminated. Inquire whether there are any additional costs linked with the contract that may arise throughout the lease period, such as late payment penalties and other surcharges.

Find a Lender Who is Willing to Approve your Application

One important step for equipment financing is to look to a lending institution such as a commercial bank, credit union, or small business association such as Equipment Finaincings for a source of working capital. While these establishments do typically have lending restrictions for new and growing businesses, they can provide quick approvals for an up-front cash amount in exchange for a commitment to provide regular monthly payments.

Lines of Credit

Many entrepreneurs also choose to work with equipment financing options that provide them with lines of credit. These financing options are used primarily to finance raw materials and production equipment such as telecommunication systems and manufacturing machines. Equipment cash flow from these lines of credit is considered good debt because they are paid back at a later date.

Once you have analyzed these factors you are more confident and ready to choose the right company for your business.Equipment Financings is one of the best options out there and it is ready to assist you. Contact one of our lenders today for more information.

Factors That Affect Equipment Financing Interest Rates

A great way to increase the value and status of your business is by adding high-quality equipment that will help you and your employers to give the best service while bringing more customers to you. But sometimes companies find themselves struggling with that since they can´t afford it, and that’s where equipment financing enters, lending you the money you need. The interest rate for equipment financing is derived using some aspects. The following are the most important factors that can determine the  interest rate on your equipment financing.

  1. Your Time in Business

Banks and other lenders view startups and firms under two years old as risky since they generally lack capital, collateral, and business credit. Banks, without a doubt, want to offer loans to startups and small companies, but they need confidence that they will be reimbursed. That’s why they have strict approval requirements.

  1. Your Credit Score and History

Your interest rates will be lower if your credit score is higher. A good credit history demonstrates to lenders that you can manage credit and make timely payments. Lenders will be wary if you have nothing (or little) to offer and may demand higher interest rates because of the uncertainty.

Getting payments on time, applying for credit only when necessary, and checking your credit score before submitting any new applications are all excellent ways to establish your credit history.

  1. The Businesses Financial Situation

Lenders will not provide funding or loans to businesses that are not profitable. When evaluating a company's creditworthiness, a statement of earnings is essential. Some lenders want three years of financial information. Business owners must demonstrate that their company generates enough incoming revenues to pay the cost of a new line of credit, as well as current debts. The financial health of a company is determined by its annual profits, which determine whether or not lenders should accept financing.

  1. National Interest Rates

Banks and lending organizations charge more for small company loans and lines of credit when national interest rates rise. When the economy is performing well, national interest rates, which are determined by the Federal Reserve, tend to rise.

If you are interested in getting a loan to finance your equipment, Equipment Financings can assist you in your mission. We establish relationships with huge and international capital providers but also with local community banks to provide a unique experience to our business owners. Visit our website or contact us for more information.

What you Need to Know about Equipment Financings

If you are looking for a commercial equipment loan, you may be wondering how to access equipment financing options. This type of loan allows you to finance the purchase of an industrial piece of equipment. The process involves taking out a loan for a certain amount of time and paying the principal and interest on it. Typically, lenders will offer lower interest rates and origination fees for this type of loan, which can save you thousands of dollars over the life of the loan.

What you Need to Know about Equipment FinancingsHow Does it Work?

There are two types of equipment loans: general and equipment specific. For the latter, you need to know the type of equipment you need and the financial profile of the business. The higher your credit score, the more likely you will be approved for a loan. Some of these financings can cover 100 percent of the purchase price. Once you have the quote for the equipment you need, you can begin the application process.

The first type of equipment financing is a standard loan. In this type of loan, you approach a lender, give them information about the equipment you need, complete a credit application, and provide your personal financial information. They will then determine the terms of the loan, which you then make monthly payments on until it is paid off. Usually, these terms are based on the expected life of the equipment and the company's overall cash flow.

 The Duration

The duration of the loan depends on the value of the equipment and the length of the loan. For example, if you want to buy commercial equipment, you should be able to pay the money back in the allotted time. However, this type of financing has several advantages. For one, it offers low-interest rates and is an excellent option for small business owners.

How Much Money Do I Need?

The amount of money you need for a specific purchase will depend on the type of equipment you want to buy as well as your credit score. The loan is based on the value of the equipment. The lender will use the equipment as collateral to secure the loan, which will make it cheaper for the business. Equipment Financings will provide you with the most accurate information about how much money you'll need to get a loan for a particular purchase based on your credit score and current finances.

An Equipment Financings we offer the best way to buy your new equipment. They assist you with financing options that are flexible, sustainable, and tailored to your needs. Financing equipment can be a tedious task especially if you are not familiar with the process. If you have any questions for our lenders, please don’t hesitate to give us a call.

What is Equipment Financing?

Equipment financing is the best option for businesses that need to purchase some equipment but don't have enough cash to pay for it. Equipment financing is a loan that gives you access to the equipment you need without having any money upfront. It's a great way of getting the equipment you require in an affordable way as well as helping your company grow. It can be a good option for small, start-ups as well as large companies that need equipment but don’t want to pay the full price up front.

Here at Equipment Financings we provide financing for business owners big and small as well as individuals with all types of equipment needs in any industry. We certify businesses with any credit history, regardless of credit score or previous bankruptcy, quickly and easily. Applying online takes about 5-10 minutes, allowing you to get your equipment swiftly and easily! We provide a choice of financing solutions at Equipment Financings to meet your demands and budget.

There are many types of industries we finance such as dental, construction, trucking, restaurant, excavation and more.  Having the right equipment for your company is also important because it helps your employees do their job better. It also helps them be more efficient and reduce the risk of accidents. Companies in every industry at some point will require a need for equipment for their businesses, from restaurants and dental offices to construction companies and trucking companies.

 We provide competitive financing options and flexible payment plans so you can get what you need when it comes to your company without taking on too much risk in one lump sum purchase. Equipment financing offers a lot of benefits. It allows a business to buy equipment outright, rather than paying for it over time through monthly installments. With the level of finance that's available, you can use the money you've saved to invest in improving your business instead of paying off loans or payments on the equipment.

There are many reasons why businesses choose Equipment Financings. We offer financing durations ranging from 12 to 120 months with no upfront costs and low rates starting at 2% APR. We've made financing equipment for small businesses in California simple and reasonable. Get the most competitive financing rates, no upfront costs, and funding in as little as three days! Using Equipment Financings leaves businesses with more cash flow, which they can use to invest in other areas of their company or improve their current processes and systems. A majority of companies spend a lot of time, energy, and money on equipment. This is because they invest in the long-term productivity and growth of the company. For this reason, it is important to have the right equipment for your company to ensure efficiency and improve business success.

Pros and Cons of Equipment Financings

For small business owners who need to buy expensive equipment, equipment financing can be a good choice. The pros and cons of Equipment financing are often a matter of personal preference. However, you should consider the pros and the cons of each type before deciding on which one suits your needs. In many cases, equipment financing is the right choice for businesses, allowing them to stay on the cutting edge and provide customers with the best possible products. Furthermore, it is easier to obtain a loan for your equipment without putting any assets up as collateral, which means less stress for you and your business

We've put up a list of pros and cons for equipment financing to help you decide if it's the correct finance option for your company.

Pros of Equipment Financings

  • Speed

Get the equipment you require as soon as possible. Equipment financing allows you to get your hands on funds quickly and even offers a very simple application form on the website.

  • Receive Funds to Purchase, Repair, or Lease Equipment.

Even if your company is well-established, there's a good chance you don't have the money to invest in new equipment. These types of loans, fortunately, provide cash for equipment needed for your business.You don't have to wait until you have enough cash on hand to make a significant purchase or repair equipment you already own since business equipment loans allow you to borrow money specifically to pay for equipment. Having this money on hand can help your company's bottom line; waiting to buy, lease or repair equipment might affect your annual revenue, especially if the equipment is essential to your operations.

  • No Collateral Needed

There's no need to offer upfront collateral and risk losing it if you default and are unable to meet your payments because the equipment itself will act as collateral. This can be quite advantageous because it reduces your downside risk.

  • Spread the Cost of Your Purchase

Cash flow is a constant worry for any business owner, and equipment purchases only add to the problem. However, because an equipment loan allows you to spread your costs, it can help businesses deal with the cash flow issues that come with equipment purchases.

  • Increase the Future Sales of Your Business

If you get an equipment loan, you might be able to improve your company's overall productivity. You'll be investing in your business and possibly earning more money in the long run if you get an equipment loan.

Cons of equipment financings

  • Owning the Equipment

Depending on how you look at it, fully owning business equipment could be a pro or a con. When you take out a small business loan for equipment, you’re borrowing money to purchase and own equipment. Equipment leasing is an alternative to this. When you lease equipment, you make monthly payments to utilize it and then return it at the end of the lease.

Owning rather than leasing equipment that may become obsolete or deteriorate quickly could be more expensive for your business. Owning, on the other hand, is usually more affordable for long-term equipment.

  • Usage Is Restricted to Equipment

This specific sort of loan is just for equipment, as implied by the name 'equipment financing.' You won't be allowed to use your equipment loan for anything else if you need the money for something else, such as hiring, rent, or other expenses.

  • You are Responsible for The Equipment

Meaning you are responsible for all maintenance charges if something unexpected happens with it. Owning the equipment goes hand in hand with this.

Although there are some pros and cons to equipment financing, it's worth considering this type of loan. If you have any questions regarding equipment financing, our seasoned and professional lenders are here to answer any questions or concerns that you may have. Call us today or fill out the application on our website to get started.

How Equipment Financing Works

Equipment financing can be a great option for small business owners who need to purchase expensive equipment. Businesses are always looking to boost their productivity and save money on expensive upfront costs like construction companies. Obtaining the latest state-of-the-art equipment provides them a strategic advantage and allows them to compete with other construction firms. That is why getting equipment financed is a popular solution for businesses who want to get an edge on their competition.

So How Does Equipment Financing Work?

Equipment financing is basically a loan to purchase business-related equipment and would need to pay in increments with interest over a period of time. A credit check would be done or you might need to offer collateral to the lender just like you would when financing a car. When you finally pay off the loan, you will fully own the equipment. If you are unable to pay off the loan in the allotted time, the lender has the ability to repossess the equipment or even things from your business depending on what you have used as collateral.

 

How to Qualify for Equipment Financing?

The first thing lenders look for when it comes to equipment financing is your credit score. The higher your credit score the more likely you will get approved with a better interest on your loan. Lenders might ask you about your business and what you will plan to do to grow it. You might also be required to show a balance sheet or a cash flow statement to help the lender figure out your financial situation and to see if you would be a good fit for equipment financing. Personal finances are another thing they look at, so be prepared to provide your tax returns, bank statements, and other personal debts you may have.

Where to Get Equipment Financing?

If you’re a business in Southern California and are looking for alternative financing options to purchase or lease new or used equipment, Equipment financings can help. We have the expertise and experience to manage financing for your business as we have helped thousands of entrepreneurs finance equipment all over the country. We offer flexible payment plans and great rates, so it’s easy to find the perfect solution for your business's needs. We can get you pre-approved for equipment financing loans in less than 2 hours. Visit us at equipmentfinancings.com or call us at (866) 61-LOANS.

5 Industries That Benefit From Equipment Financing

5 Industries That Benefit From Equipment FinancingEquipment financing is a service that allows you or your business to purchase the equipment you need without having to pay for the full cost upfront. In this case, the equipment is financed with an agreement to make fixed payments for a set period of time. This type of financing is perfect for individuals who are looking for ways to grow their business and don’t want to put all their eggs in one basket. It gives them the opportunity to purchase the equipment they need without having to take out loans or use any of their own funds. Here are 5 industries that benefit from equipment financing

Trucking Industry: Running a successful commercial trucking business requires you to be super organized and have the know-how to keep your business running efficiently. Getting equipment financing allows business owners to hire more drivers, buy more trucks, and provide the capital to maintain their fleet. Transportation companies can also use equipment financing to pay for any additional equipment needed for the business, such as seasonal tires, offices, workflow software, and additional storage. Having the available funds will help any trucking company grow its business.

5 Industries That Benefit From Equipment Financing

 

Dental Industry: Starting a new dental practice office is a very costly thing to do whether you build it from the ground up or looking for commercial buildings. Getting dental equipment financing will provide the potential to cover any major costs that you need in the beginning. You can use the extra funds to pay for staff and payroll, dental chairs, x-ray machines, office software, and other general forms of dental equipment.  

Restaurant Industry: Restaurants require a lot of equipment to start running. The initial investment is a hefty one when you need to purchase not only the location of the restaurant but purchasing, ovens, dishwashers, fridges, stoves, and other common restaurant equipment. Even if you already have an established restaurant business, then it still might be a good idea to look at financing for upgrading to new equipment or new furniture.

Construction: The basis of any construction company is the equipment needed to even start a project. Having the access to the best construction equipment available will make your business more reliable and improved gear allows you to take on more ambitious projects. Financing construction equipment is a good way to keep your current cash flow and pay what you can over time.

At Equipment Financings, we know your business is of utmost importance, and we’ll do everything possible to make sure you have what you need to succeed. That’s why we offer flexible terms, free consultations, and personalized services for each borrower. With fast and easy approval for businesses with any credit history, we offer a variety of financing options that can fit any needs and budget.