Purchasing equipment is one of the most common causes small business owners ask for external financing. You can get everything from medical equipment and computers for your office building to heavy machinery for the manufacturing unit without paying the full price upfront.
Whether you are a start-up or a small business, an emerging or an established firm, purchasing required equipment to meet your company requirements takes away necessitated working capital. If you are a small business or a big company and looking to buy new equipment or to renew your existing inventory, you should consider the benefits of equipment financing as it can be the best way to meet your equipment buying needs.
Equipment finance is quite common for those companies that strive hard to source conventional funding. Therefore, this alternative is an excellent choice, particularly for small businesses and start-up companies. It is now reasonable to think that you can have the equipment needed to function without having to pay the total price at one time. Most lenders will support you with the purchases of equipment from as little as $5,000. It is worth regarding that equipment finance can sometimes work out more affordable than other traditional means of funding.
How to Qualify for Equipment Financing?
Any firm that utilizes equipment can reasonably make usage of equipment financing. It includes everything such as transportations, workstations, and machinery used by the business.
Qualifying for equipment financing is a different subject. Equipment loans serve to be a comparatively conventional type of financial product. In most cases, you’ll need to have good credit of above 600 and you should be able to display the capability to pay off your equipment loan or lease. You’ll also need to choose the best equipment financer; which means, you’ll need to pick a lender that funds the type of equipment your business needs.
Although every lender has distinct terms, here’s the standard pricing most lenders demand:
• Business must have been at least one(1) year old
• Have a minimum credit score of 600
• Annual revenue of your business should $100,000+
You can still pass for the small business equipment financing loan or lease if you don’t fall under requirements as already mentioned that different lenders have different terms and services.
How to get $50K in Equipment Financing?
You’ll find various alternatives while seeking equipment funding solutions like conventional banks to regular national lenders and online lenders. The best option is to look for an online lender like BitX Funding because they are a marketplace for small business loans, and they have a broad shelf of lenders from banks to alternative lenders and can be the right option for equipment financing as they’re experienced and have already helped thousands of small businesses in need of a loan. Their support can help achieve your dreams if your company has the potential to grow and develop.
View the following criteria when deciding on an online lender:
The Reputation of Lender: The lender’s track record must prove them to be trustworthy. Check out the reviews on the BitX Funding by its valuable customers.
APR and Fees: The best lenders will have competing interest rates with lower charges. At Bitx Funding, the standard APR is 12% so that your $10K piece of equipment will cost you $11,957.15, with a monthly payment of $332.14.
Repayment Terms: Before you sign the contract with your lenders, go through it and check how payments add up and how long is the repayment cycle. You’ll go with the one that has the terms that fit your business and concerns.
Equipment Funding Pricing:
Different lenders have different pricing rates which are depended on the lender, but typically a 7% interest over a 3-year (or 36-month) term is charged.
How Much Money can be borrowed?
Bitx Funding allows you to get an amount minimum of $5k and to the maximum of $5M! So, for example, if you need finance of $50k and you are eligible for getting a loan by qualifying for it, you will be lent the required amount within 24 hours.
If you choose BitX Funding, you can receive money in as fast as 24 hours after qualifying for it. We believe in fast cash delivery without withholding the payment issues and other formalities.
Check out our financing services here.