Here Are Some Reliable Resources for Financing Large Equipment Purchases

Most businesses need equipment such as a veeco star 100 and CNC plasma tables to function. Equipment is a part-and-parcel of every business’s life. Whether you’re running a small business online or a large-scale brick-and-mortar shop, you’re going to need equipment in one form or the other.

Getting the equipment you need can simplify your life. However, equipment is costly and you sometimes find yourself looking for reliable equipment financiers to cover that aspect for you.

What Is Equipment Financing?

As a business, you may not have access to the kind of money required to purchase equipment on a large scale. What do you do then? Do you miss out on important equipment just because you don’t have the funds for it? No.

You look for Equipment Financiers.

In Equipment Financing, lenders lend money to finance large equipment purchases. It’s like a loan that can be paid off over time and usually involves some percentage of interest. If you’re looking for equipment financing solutions for your laundry business, you may get in touch with companies like Finance My Laundry. And if you need commercial laundry equipment servicing, make sure to reach out to professionals.

Equipment Financing is a more agreeable alternative to equipment leasing. Unlike equipment leading where you have to either renew your contract or return the equipment once the time period is up, in equipment financing you benefit from having equity in the equipment.

Coverage

Equipment Financing allows you to borrow 100% of the value of the equipment you require. It’s like a payday loans no credit check which you pay off over time. This equipment loan allows you to access tens of thousands of dollars worth of equipment at practically no upfront payment from your business.

Options For Equipment Financing

Banks have a pretty lengthy process for loans in place and you may not even make the cut sometimes. With financing companies and lenders, your chances of getting approved are significantly higher.

To help you find the best possible equipment financing option for you and your business, we indulged in some thorough research. Here’s a guide on the options you have when looking for equipment financing:

0% Down

Zero Down payment is one of the most lucrative options. It allows you to take equipment loans when you don’t have the cash savings to back them.

Zero down payment is a fan-favorite among businesses who need financing to take care of their equipment needs. Through the equipment, you can reap the benefits directly without parting with your capital.

Of course, when you pay nothing in down payment, the lender takes on significant risk. This is why approval for Zero down payment usually involves:

• Great credit score.
• High-interest rates.
• Higher and hidden equipment costs.

Fair Credit

Just like traditional loans, you pay a certain amount over a specific period until your funding is paid off in full. According to the lifespan and usability of your equipment, a business should try getting a short-term loan to ensure they’re not making payments on a piece of equipment after it has long been dead.

Good to Excellent Credit

With great credit, you automatically climb to the top of the list of eligible candidates for equipment financing. Having good credit gives you an edge over all the others. It shows that you’re fully capable of paying the loan amount whenever required.

Having a good to excellent credit means you get access to:

• The best equipment lenders.
• Great options for equipment financing.
• Lower interest rates.

If you think you may not be using the equipment after a certain time period or are in a business where equipment gets outdated with time, it’s best to lease equipment instead of purchasing them. 

In this way, you’re free to lease newer equipment and are not stuck with equipment you have practically no use for. That’s a loss of both space and capital.

Bad Credit

Bad credit reflects poorly on a business. With bad credit, you may have to put in additional work to get approved. The best thing you can do is prepare beforehand, even when you don’t need equipment financing. Do your research so your business doesn’t have to take the brunt.

When you have bad credit, consider making up for it by:

• Equipment leasing.
• Working with banks or financing companies you have an existing relationship with.
• Offering additional collateral.
• Paying more down payment.
• Using a co-signer.

Startups

Getting equipment financing for startups is not easy. Banks and lenders tend to stick with applicants that have a history in business and a healthy flow of revenue. However, some lenders can hook you up with reliable equipment at a fixed monthly installment to be paid over time.

You may be eligible for a startup equipment loan if:

• You have a credit score of 600+
• No bankruptcies in the last 7 years
• Business license

The Takeaway

When you’re buying equipment, it’s best to do your research. You don’t want to apply for a loan and then look for the options you have. This can result in you paying more for equipment than you would have if you researched beforehand. 

The financing industry is competitive. Most businesses with a credit score or revenue can get access to premium deals and lower interest rates. Equipment financing is a cost-effective way of purchasing the equipment you want without putting in the capital required to do so.