Loan Terms – 1 to 5 years
Interest Rate – 7% – 45%
Minimum FICO Score – 500
Payback – Monthly
Funding Time – 1 week to 1 month
About Equipment Financing
As opposed to asking for capital outright, equipment loans are more secure than others, and lenders are sometimes more willing to work with you. This type of financing helps you get the new equipment for your business right away. When your business needs to buy a piece of machinery that is too expensive to do so with cash, you will benefit from an equipment loan. This can be a wonderful way to increase your top line, buy adding a new piece of equipment. At the same time you can preserve your cash flow by doing so with someone else’s money.
The closest mental comparison when thinking of an equipment loan, is shopping for a new car. Personal credit of the business owner plays a role, along with cash flow, and overall financial strength of the business. However, it is important to realize that poor credit will not disqualify you completely. It will however play a large role in the rate and terms you will receive.
What is a Equipment Financing?
Equipment financing is the advancement of funds used solely for the use of buying equipment or machinery for your business. These loans will cover a wide range of products, as different industries rely on different pieces of equipment.
What Types of Businesses is it Good For?
This type financing can help virtually any industry. There may be different lenders that will specialize in different types of equipment, however any business that needs to purchase equipment to operate can benefit from this form of financing.
What are the Minimum Requirements?
As the equipment you are purchasing acts as the collateral for the lender, it is not extremely difficult to qualify. Credit, time in business, cash flow, and value of the equipment being purchased are the main determining factors.
Why Use VentureLynk?
VL’s mission is to empower your business by making small business loans simple through options, speed, and trust. No matter the financing structure you may need, VL offers countless different loan products from a variety of lenders. Finding out which business loan is best for you is why we’re here.