Now that human labor is replaced by machines, running a small business has become easy. 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 Right Away
What is Equipment Financing?
Need to finance a new or used equipment for your business? Equipment financing allows you to finance up to 100%. Usually, there are two ways one can go; either you can lease an equipment, or you can 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. Use the accessible and reliable equipment financing to renovate, purchase or mend any sort of equipment.
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. The only other fee you have to pay is to cover your taxes and other minor charges.
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!
- 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, you can finance 80% of the equipment cost. Apart from this, you have to offer the down payment to the lender. The purchased equipment is your 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 Other than this, you can send a loan application if your outdated apparatus is acting up.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 comes 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.
Positives and Negatives of Equipment Financing
Equipment Financing is one of the suitable funding options for an upgrade of any piece of equipment.
Here are a couple of plus points of Equipment Financing:
- No extra collateral.
- Equipment will act collateral.
- Fast approval.
Now, let’s go through some drawbacks of Equipment Financing:
- Once you are done clearing of the debt the equipment is likely to become old school.
- Depreciate the purchased equipment to deal with the yearly Business Tax Returns.
Can you qualify for 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, the final cost of equipment financing will depend on your all over 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.
So, what does the lender look at? 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 and more importantly, if you are running a business for more than 2 years, your business is making money more than $130,000, with a credit score above 600 you are an ideal situation going for yourself.
How can you apply for this supreme offer?
Merchant Advisors’ Equipment Financing is one of the simplest financing option to apply to. 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. As this is equipment financing, a few pieces of information about potential equipment are a necessity. The lender will ask for a quote, the cost of the very equipment, and some credentials regarding the equipment.
Documents needed to APPLY
Workings of Equipment Financing –Rudiments
Don’t feel threatened if you are unable to gather funds to purchase new equipment. We present you, Equipment Financing. This funding option allows you to get any type of equipment you please, 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 its no collateral policy. Equipment Financing come under self-secured business loans. These characteristics, especially, makes it a bit easier for the 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 Expire?
Usually, most of the lender's set the terms to at least 10 years, but then again some lenders want to get rid of the equipment as they have cleared out all the debt. Because they fear the equipment will become obsolete and they want to stay in touch with the recent trends and need.
All things considered, 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.
Thin Line Difference Between Equipment Financing And Leasing
Equipment loans or financing and equipment leasing are designed to cater to two very different business problems. If your business needs fresh equipment to fix the problem of temporary nature, apply for equipment leasing. Because once the problem is fixed, the need for the equipment vanishes as well.
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 plus point to 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. 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. In order 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 be always updating your personal and financial credentials. So, if you are applying for an equipment loan because you want to purchase apparatus for your new venture, mention the new project 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. With Merchant Advisors, you not only get equipment financing, but also credit resources, affordable prices, renewal benefits, early repayment savings and, on the top of all that, peace of mind.
To get started, fill out a 3 step online loan application, provide basic business information, and you will get a decision in one hour and funding in as quickly as 24 hours.
You will get an email, immediately, mentioning the current status of your loan. Our expert financial advisors will reach out to you; they work with business owners every day to address emerging financial challenges while running a small business.
Building a solid credit profile is important to gain access to 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.
In order to make a wise selection from financing and funding options, you should have a clear idea about future business plans and strategies. Once you have a clear vision, you will be able to fully utilize the resource in a fine manner.
In addition to this, if you ever feel financially stuck you should take help from our financial advisors. So, update your equipment and your business to new heights.