Business Equipment Financing Options with Good or Bad Credit
Purchasing equipment is an essential part of any business. Depending on the industry, some equipment is revenue producing and a necessary part of running a company. Businesses often have limited capital with which to deploy and for some companies purchasing equipment outright may limit their ability to expand to meet the opportunities available to them in the market.
As a result, many companies pursue business equipment financing as a way of obtaining essential equipment with which to run their business. There are many ways that companies structure business equipment financing deals and there are lenders available to assist them in the financing of these items. Some common types of lending are lease agreements and equipment purchase loans.
For borrowers with credit histories that may have red flags associated with them, there are equipment financing bad credit loans available. This type of loans provides borrowers with the ability to finance their equipment purchase even when they have gone through financial problems in the past. These inventory bad credit loans are generally structured to provide certain protections to lenders including personal guarantees by company owners, liens on the equipment and other assets held by the business, and higher interest rates on these loans.
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The Benefits of Equipment Financing
- The application process is much simpler than with traditional/bank financing. In most cases, a simple application is all that is required for purchases up to a certain dollar amount, depending on the funding company. After this dollar amount is met, some tax documents may be required but it is definitely not, like what is required at banks.
- There is usually one hundred percent financing, including equipment cost, installation, delivery and any other soft costs included.
- Capital equipment loan may provide a tax benefit depending on your particular business situation.
- You can finance almost any type of equipment for your business.
- Business equipment financing programs are usually pretty much tailor-made with options to fit your business’ specific needs.
- It is easier to keep your inventory and equipment up to date and functioning at one hundred percent.
So, it is easy to see why there are so many businesses that opt for equipment leasing since it does much more than simply conserve your working capital and cash flow.
Determining Which Equipment to Finance
When you’re looking to acquire inventory financing, there are certain factors to take into consideration. Commercial equipment financing is a type of loan in which you’ll buy the commercial machine over a particular period of time. The financier uses the machine being acquired as collateral.
Financing the machine is a sound opportunity for expensive long-life apparatus that isn’t going to become outdated in the near future. Once the equipment is paid off, you can still use the commercial equipment as it still has a fair value.
The machines that you shouldn’t finance may include computers and any high-end equipment with short beneficial lives. These kinds of inventory are not a good choice for financing since these equipment go out-of-date rapidly, which most of the time, just as or even prior to its payoff period. When such equipment is paid off, there’s a big chance that you may be left with so many items that has too little or no value.
How to Get Business Equipment Financing
There are some ways to go about getting business inventory financing. WG Financing is one of the fastest growing firms offering commercial equipment financing.
There are many advantages working with us:
- Credit availability is perhaps the most important advantage.
- By financing your equipment with us you can conserve working capital.
- The flexibility offered by our company is a real plus when you need equipment financing.
- Our ability to help you finance new equipment when the old equipment is no longer the best is unbeatable.
- We are budget friendly because we want you to succeed and continue as our customer.
- There is no down payment required.
- We offer monthly payments that are fixed.
We have a staff person who will work with you from the beginning to the end of the process to ensure that your payments are suitable for your budget, and that the loan process is as smooth as we can make it. Our business equipment financing is designed to work with most small and mid-size businesses.
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