Why Choose Equipment Financings for your Financing Equipment Needs?
Whether your company is a product or service based, having the right equipment to keep your operations going and spark new growth is critical. Businesses that don't have the right equipment to support their growth don't get those needed profits, and the bottom line suffers. Equipment financing, also called equipment loans, that help you fund up to 100% of what you need to purchase and use the equipment you need, to run your company and grow it into a success story. There are many different lenders that offer equipment grants so you can find the best fit for your needs and budget. This way you can keep your bottom line intact, invest in the future of your company, and get the resources you need to fuel your growth and success.
The first step to getting the funds you need with equipment financing is to find a funding circle of lenders who are willing to approve your application.
One of the best sources for equipment financing is to look to a lending institution such as a commercial bank, credit union, or small business association such as Equipment Financings 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. While you can obtain approval for equipment financing through one of these avenues, most banks require a working capital management agreement, or guarantee, which puts a legal contract on your company's assets should you fail to repay the loan.
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 are considered good debt because they are paid back with a later date. Equipment financing options also make available cash flow from sales of products that utilize the raw materials sold with the loans.
When evaluating equipment financing options to obtain for your small business, it is important to take a close look at your credit score. Your credit score is an indicator of your responsibility, reliability, and likelihood of paying back the loan. If you have a good credit score, you will be able to
qualify for a competitive interest rate. Even if your credit score is not ideal, your credit history will at least give potential lenders a starting point in formulating their loan. As your credit score improves over time, you may find that the interest rates become more competitive and that they become willing to work with you to ensure your financial future. Ultimately, you will want to borrow money for your new equipment only after your credit score, income, and dependability have been assessed so that you know you can make the payments on time.
Our lenders at Equipment Financings will walk you through the whole process step by step until you are satisfied with their personalized financing solution. We can help you find the funding you need and get started on the path toward success. In addition, our lenders can make the process easier for you can get the financing you need for your equipment quickly.
Equipment Leasing VS. Equipment Financing
Some equipment financing options may allow you to take advantage of a low-interest or no-interest loan term. Equipment leases tend to have very low interest, because the company likes to keep the equipment operational in its service area. Equipment leases can be used for everything from office furniture to new business vehicles. Equipment leases tend to be much less expensive than equipment loans, and you don't have to pay any upfront costs like you would with an equipment loan. But, you do have to make sure that you can pay the monthly bill and that you use the equipment on a regular basis.
Equipment leasing was one of the original forms of small business financing created to assist fledgling business owners get their feet wet.
While there are many advantages to leasing as opposed to equipment financing as well as multiple disadvantages, some business owners think that it is not a good idea because they don't control their leasing decisions. Equipment leasing allows business owners to choose their equipment. In order to be able to lease or finance equipment, you need to be working with a reliable financing company. This is not always as simple as finding the right bank or credit union. Financing companies have varying reputations based upon their ability to back their claims up. A lot of times, small business owners wind up paying more for their equipment than what they should. The financing company they go through will not be very helpful if something ever goes wrong. Equipment financing can be a bit tricky, so it is important to only work with those companies that you can trust.
How Equipment Financings Can Help
When you use equipment financing lenders, you can get the financing you need without going through the traditional lending process. Many traditional lenders require you to put up security or collateral in order to get a loan. Equipment Financings lenders do not do this. If you have enough security, you could easily qualify for your equipment financing loan using traditional lenders. Equipment lease lenders do not want to take on too much risk, so they are more willing to give you more leeway when it comes to choosing the equipment that you want to lease.
There are a few things that you should consider before you start with equipment financing. First of all, you should ask your local lenders what
their terms and conditions are for equipment financing. Some lenders require more documentation and can take longer to get the funds you need. You also may want to find out how much interest you will pay on your loan. This can vary greatly between lenders. The financing process starts with choosing a term through Equipment Financings. We offer 12-month to 120-month financing terms with no up-front fees and competitive rates that start at 2% ARP. We've made financing equipment easy and affordable for small businesses in California. Get the best financing rates, no up-front fees, and funding as quick as 2 days!