Now that human labor is replaced by machines; running a small business has become easier. But machines do break down, and an upgrade is necessary to keep the business running. With equipment financing, it is easier to renovate. Regardless of the size of the business, as an owner, one must stay in touch with the current trends.
Merchant Advisors will give you a brief insight into the mechanics, and pros and cons of equipment financing.Apply Now
What is Equipment Financing?
Need to finance a new or used equipment for your business? Equipment financing allows to finance up to 100%. Usually, there are two ways one can go; either one can lease equipment, or apply for an equipment loan. So, if your business needs a new POS system, a freshly booted system unit or a delivery truck, equipment financing or equipment loan fast and quick approval will help you meet your dreams. Apply for an accessible and reliable equipment financing to renovate, purchase, or mend.
If you decide to go with equipment financing, you don’t have to worry about the down payment. Moreover, you will be able to finance 100% of the whole cost.
Have a look at the perks of Equipment Financing:
- You can finance up to 100% of the equipment value.
- The loan/financing terms only die when the equipment dies!
- Enjoy lower interest rates ranging from 8-30%.
- You can have the funds as fast as two days.
What is an Equipment Loan?
The final loan terms will vary according to the monetary resume of the borrower; however, through equipment loans, the borrower can finance 80% of the equipment cost. Apart from this, the borrower has to offer the down payment to the lender. The purchased equipment is his/her property from day one – it is a plus point!
So, if you want to amplify your collection of equipment, for business purposes, apply for an equipment loan. Other than this, you can send a loan application if your outdated apparatus is acting up.
Here are some of the perks of Equipment Loans:
- Equipment Loans come with fast approval, only if you are applying through the alternative lenders.
- Flexible loan repayments, you can repay when your business is making enough profit. Enjoy the equipment with ease.
Pros and Cons of Equipment Financing
Equipment Financing is one of the suitable funding options for an upgrade of any piece of equipment.
Here are a some pros of Equipment Financing:
- No extra collateral.
- Equipment will act as collateral.
- Fast approval.
Now, let’s go through some drawbacks of Equipment Financing:
- Till the time borrower clears the pending debt, the equipment is past its sell-by date.
- Depreciate the purchased equipment to deal with the yearly Business Tax Returns.
Can you qualify for the Equipment Financing?
Merchant Advisors offers Equipment Financing on realistic terms; our qualification criteria aren’t set far high on the pedestals. Every business needs equipment financing; however, the final cost of equipment financing will depend on the borrower's performance. The contributing factors include the nature of the business, type of equipment, credit score, business plan, and financial worth.
Even the business owners with a bad credit score can have easy access to Equipment Financing. Equipment financing doesn’t ask for particular collateral because the purchased apparatus will compensate.
The lender will evaluate your performance depending on the borrowing history. If you have defaulted on your payments in the past, then your chances are rather slim. On the contrary, clearing off the debt on time in the past will strengthen your chances.
Lastly, if you are running a business for more than two years, your business is making money more than $130,000, and with a credit score above 600, you are an ideal candidate for the equipment financing.
How can you apply for this supreme offer?
Merchant Advisors’ Equipment Financing has a simple application and approval process. Give us your credit score report, business tax returns, and bank statement. We will get back to you with a final verdict in just 24 hours. The lender will ask for a quote, the cost of equipment, and some credentials regarding the equipment.
Documents needed to APPLY
Workings of Equipment Financing –The Rudiments
Don’t feel threatened if you are unable to gather funds to purchase new equipment. Equipment Financing allows a business owner to purchase equipment, oscillating from a delivery truck to a brand-new refrigerator.
Equipment Financing allows its user to either purchase a brand-new gadget or a used gadget. The loan terms are dependent on the price of that piece of equipment. Equipment financing major benefit is no collateral policy, and it comes under self-secured business loans. These characteristics make it easier for business owners to apply for the loan.
If due to some unfortunate circumstances you are unable to make the repayments on time, the lender will take control over the equipment and you will lose all the authority over it. So, make sure you have set multiple reminders to pay the debt.
When will the Equipment Financing Term Expires?
Usually, most of the lenders have set the terms to at least ten years, during this time frame some borrowers have already paid the debt and they are likely to replace their pieces of equipment to stay in touch with recent trends.
The terms of equipment financing expire when the equipment expires. Satisfaction and need to keep the equipment for a longer time might result in longer equipment financing loan term.
The Difference Between Equipment Financing And Leasing
Equipment loans or financing and equipment leasing are designed to cater to two different business problems. If your business needs new equipment to fix the problem of temporary nature, apply to equipment leasing. Once the problem is fixed, the need for the equipment vanishes.
On the other hand, if you desire to add the purchased equipment in your permanent collection, apply for an equipment loan. Equipment purchased from equipment financing is yours from day one. The equipment shall remain under your supervision even after you have clear all of the debt.
How to improve your Financial Credibility?
In order to strengthen your chances of loan approval, here are a couple of steps you should practice as a small business owner:
Lenders can’t emphasize enough on the importance of the 'good' credit score. 'Fair' credit score adds a plus point to the loan application. You should analyze your credit score before applying for the loan. Clear out all of the outstanding debt, pending loan payments or any bankruptcy, and make sure you have a clean financial record. Work hard to improve your credit score so that you can improve your chances of loan approval.
No lender will give a loan to a business owner who doesn’t have any business plan. The lender looks forward to your business strategies, as it gives them a brief glimpse of your managerial skills. To ensure the loan approval, vividly mention your products and services to the lenders.
Make sure to project a realistic picture of your assets and business goals. Conduct some research on your services and targeted audience. Lenders don’t demand a business thesis from your side; they want a blueprint of your business.
If you want any help, our dedicated financial advisors are just a call away. They will help you prepare for the loan application. Our goal is to provide every nature of financial assistance.
Funding a dying business gets hard for alternative and traditional lenders. They are offering the loan on the condition that you will be making repayments on time. If you are unable to show incoming cash flow and adequate annual revenue to the lenders, this might cause some problems.
To avoid divergences, you must have all the financial documents ready. Make sure you are sitting on balanced credit sheets. Every number you put in is supposed to be accurate. If the lenders detect any inconsistency or irregularity, your loan application gets tainted with fraud. So, be honest and don’t manipulate the numbers.
As a business owner and a borrower, you should keep checking your financial credentials and keep on investing in new enterprises. So, if you are applying for an equipment loan, because you want to purchase apparatus for your new venture, you have the new project to state on your resume. Lenders don’t invest in stale businesses; let them know you are tackling new projects to ensure the growth of your business.
What Gives Merchant Advisors An Edge Over Other Lenders?
We've learned a lot by working with thousands of small business owners like yourself. Merchant Advisors provides business capital, credit resources, affordable prices, renewal benefits, and early repayments. And most importantly, peace of mind!
To get started, fill out a 3 step online loan application, provide vital business information, and you will get a decision in one hour and funding in as quickly as 24 hours.
Our expert financial advisors will reach out to you; they work with business owners every day to address emerging financial difficulties.
Building a solid credit profile is essential to access funds at reasonable rates. We help you with your credit by reporting it to the credit bureaus.
We offer discounted fees on loan renewals and low prices exclusively on small business loans for our loyal customers. We are always ready to help now, or anytime in the future.
If you run a business that requires the constant upgrading of equipment, then you should apply for an equipment loan. Apart from equipment financing/loan or leasing, you can go with invoice financing and lines of credit as well. It is recommended to apply for a loan so that you can save your business from disrupted cash flow.
To make a wise selection from financing and funding options, a business owner must have a clear idea about future business plans and strategies. With a clear vision, you will be able to utilize the funds resourcefully.
In addition to this, if you ever feel financially stuck, you should take help from our financial advisors. So, update your equipment and take your business to new heights.