Many businesses need about five or six essential items to succeed and compete with other businesses and equipment is one of them. Unfortunately, the cost of equipment can be astronomical for some industries. That’s where business equipment advances come in to play. A new or established business can obtain a business equipment loan using a number of strategies. The following contains some information about some of these strategies. If you would like to apply for business equipment financing, fill out our simple form to the right and a representative will be in touch to discuss your options.
How to Get Approved for Commercial Equipment Finance
A business equipment loan is a form of collateralized funding that can cover a business’ operational equipment costs. Commercial equipment financing can cover a wide variety of items such as restaurant ovens, construction equipment, computers, tables, chairs and more. It can help a business to get on its feet until the owners can return the loan proceeds. If you are a new business, you may have to meet certain criteria before you apply for a business equipment finance solution. First and foremost, you may need a clear vision as presented in a business plan before you can obtain approval. If you are an existing business however, it will be much easier to get funded if you have a track record of success.
How Much Business Equipment Financing Do You Qualify For?
Most existing businesses can qualify for equipment financing. Potential lenders will typically review several aspects before they make a decision on how much you qualify for. The first factor that they will take into effect is the company’s credit score. If a prospective borrower has a bad credit score, they will have to prove that it can earn enough money to repay an advance and make additional profits. Another factor they will look at is the history of your business – how long you’ve been operating, how profitable you are, and whether you have any current debts. The third factor they look at is the value of the equipment you’re looking for purchase.
Equipment Financing for Startup Businesses
Small business equipment loans for startups require a well thought out business plan. A business plan is a computerized or blueprinted projection of profits that will work their way into the business during a two-year period in most cases. The prospective lender will consider other factors such as the company’s assets, liabilities, accounts receivable and the like. They will also consider down payment options before they make a decision on a small business equipment loan for your startup company.
Industrial Equipment Financing and Other Types
Many different types of vendor equipment financing options exist. Industrial equipment financing is necessary for construction workers and other organizations. Computer equipment financing is for companies such as call centers that need to have all-day access to a fleet of computers. This type of financing may also be necessary for a schools and institutions.
Financing for Computer & Technology (IT) Equipment
Technology equipment financing is for companies that rely on hardware and software to run their operations. For example, a computer store needs computer equipment to operate and in many cases, can’t afford the up-front cost. This is where financing options would come into playl. If you are in need of IT equipment financing and don’t know where to start, we can help.
Amounts for Vendor Equipment Financing
A lender’s limits for issuing equipment loans for small businesses vary according to the industry. For example, IT equipment finance may not be as generous as construction equipment finance. Typically, a lender will offer business equipment financing in the millions of dollars for the right company. Financing limits would depend on the applicant’s resources. A business can receive substantial business equipment funding if it is willing to provide additional collateral.
How to Get Equipment Funding for Small Business
A prospective business owner will want to contact Halo Capital to find out which options are available for equipment funding for their small business. We can provide funding solutions for a wide variety of business needs. To learn more, fill out the form to the right and someone will get back to you within a few hours to discuss your options.