If you own or operate a business, you know how expensive it can be to provide the right equipment to get the job done.
For some businesses, such as construction companies and landscaping services, heavy machinery is necessary to do any work at all.
For other businesses, such as technology firms or home service providers, their core product requires expensive equipment to function correctly.
Many businesses need capital to obtain this equipment, which can be difficult unless you have the best credit. That is where Equipment Financing comes in.
- What Is Equipment Financing?
Equipment Financing is a way for companies to acquire the equipment they need to do business in today’s economy.
Equipment financing is where a company will loan you the money you need to purchase or upgrade your equipment, and in return, that company receives regular payments over a set amount of time.
- How Does it Work?
Many companies that offer equipment financing will set policies regarding interest rates and the length of time you have to pay back your loan.
The company offering you the financing will also request a lien on your equipment, which is their way of protecting themselves if you cannot finish paying off the debt.
So, if you need some capital to help upgrade or purchase equipment for your business, then Equipment Financing may be the right option for you.
With this type of financing, you won’t have to worry about getting your hands on a loan from a traditional bank where they could potentially turn down the request based on your credit history.
- Why Equipment Financing?
The need for capital to pay for equipment is one of the biggest challenges many small businesses face.
Many companies require leasing or financing to buy up all necessary equipment. However, unless you have an extremely high credit score, there are not many options out there for business owners just starting who cannot afford to fork over thousands or even millions of dollars to pay upfront.
Equipment financing is an excellent alternative to securing funds for all the equipment you need for your business.
Instead of borrowing money from banks or investors, you can pay back an equipment finance company with monthly payments that are far less than what the interest charges would be if you took out a loan through another means.
- Why You Should Obtain Equipment Financing
There is always a good reason to find financing for the equipment you need to make your business run smoothly.
Whether you are starting up or already in business, someone wants to help you get the equipment that will open up new opportunities and increase productivity.
For one thing, financing is available no matter what your credit score is like; if you have a low credit score, this is an excellent way to build it back up.
Even if you cannot afford the total amount for your purchase, most companies will offer partial funding so you can pay off your loan before the due date.
Another benefit of equipment financing is finding very reasonable rates and terms as long as you meet the lender’s requirements.
- How To Get Equipment Financing With Bad Credit?
If you have bad credit, the best way to get equipment financing is through a company specializing in loans for businesses with poor credit scores.
Such companies are willing to work with business owners who may not qualify for other types of traditional loan options.
One good thing about this type of financing is that it comes in many forms. You can pay for various equipment pieces and upgrades, from ovens to industrial machines.
Another benefit is that these loans often come with lower monthly payments than traditional loans or leases.
That being said, not all companies offering Bad Credit Equipment Financing are created equal.
To get the best deals available, you need to find the right company for your needs. Make sure the company is reputable and has been in business for a long time.
If you are looking for financing to start up your side hustle, make sure the same holds for any banks or lending companies they work with.
Lastly, be extremely careful when accepting partial payments on equipment loans. Most lenders will allow part of your payments to come in the form of a check, but be sure only to accept checks made out for the total amount.
Companies offering partial payments might try to default on your loan when you least expect it.
Conclusion:
There are various reasons why you should obtain equipment financing, including building your credit score or funding your side hustle. To get the best deals available, you need to find a reputable lender that works with business owners who have poor credit scores.
Make sure the company is reputable, has been in business for a long time, and works with reputable banks.
At Clear Skies Capital, Inc we provide the complete suite of equipment financing options. Contact us today to get funding for all your equipment needs!