Equipment comes in all shapes and sizes, yet somehow the majority of equipment needed for businesses is expensive that’s why they go for equipment financing.
What does a business owner do when they are trying to increase productivity or efficiency, fix a malfunctioning machine, or better the quality of their product or services, and he or she doesn’t have the working capital to do so?
They seek equipment financing.
If you’re at this point in your business, here are a few tips on how to qualify, what pros and cons exist, what your options are as a business owner in your industry, and how to apply:
How to qualify for equipment financing
At REIL Capital, we make qualifying easy.
You’ll need a credit score of 600 or higher, $250,000 in annual revenue, and to be 12 or more months along in business.
Still not sure if you’ll qualify? Ask one of our financial representatives for support.
What are the advantages and disadvantages?
Depending on your business’s needs and financial standing, equipment financing may be a better or not-so-great option for you.
Advantages include retaining cash flow for additional operating expenses, avoiding inflation in the event that your piece of equipment increases in price, and tax write-offs.
On the contrary, equipment financing has a downside due to down payment requirements and defaulting risk if you do not pay.
What are my equipment financing options as a small business owner?
As our experts explain, equipment financing allows you to purchase new equipment by putting up 100% of the purchase price; a business owner can also use it to place a lien against your company’s already owned equipment so that you can recoup up to 100% of the purchase price.
The first step is to determine what your goal is with this financing: do you want to purchase it all at once, or place a lien on it?
Second, you’ll need to explore the many options you have including our equipment financing, term loans, SBA funding, small business line of credit, or a business credit card.
How to apply
Our 3-minute funding application is simple and straight to the point. Some lenders may ask for specific documentation and detailed paperwork, therefore extending the funding process.
We on the other hand only request a completed application, 3 months of business bank statements, and information detailing equipment (year, make, model, miles, etc.).
Easy enough? Apply today.
