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.