Bad Credit Equipment Financing:
How We Can Help You Get the Funding You Need
At BitX Funding, we understand how difficult it can be to secure financing when you have bad credit. Many traditional lenders have strict credit requirements, making it challenging for small business owners with less-than-perfect credit to get the funds they need to purchase essential equipment. However, we believe that bad credit shouldn’t stand in the way of your business’s success. That’s why we offer bad credit equipment financing options to help you get the funding you need to grow your business.
What Is Bad Credit Equipment Financing?
Bad credit equipment financing is a type of loan designed specifically for business owners with poor credit. This type of financing allows you to purchase the equipment you need for your business, even if you have a low credit score. Unlike traditional loans, bad credit equipment financing takes into account factors beyond just your credit score, such as your business’s revenue and cash flow.
How Can Bad Credit Equipment Financing Help Your Business?
Bad credit equipment financing can help your business in several ways. Here are just a few examples:
- Improve your business’s productivity: With the right equipment, your business can operate more efficiently and effectively, which can increase productivity and ultimately, profitability.
- Stay competitive: In today’s fast-paced business world, it’s essential to have the latest equipment to stay competitive. Bad credit equipment financing can help you purchase the equipment you need to keep up with the competition.
- Increase revenue: By upgrading your equipment, you may be able to take on more clients or projects, which can increase your revenue and help your business grow.
How to secure equipment loans
Equipment financing is a popular option for business owners looking to purchase large-scale equipment, such as heavy machinery. In order to qualify for equipment financing, collateral may be required to secure the loan and personal credit scores will also be taken into consideration.
Online lenders and traditional banks may offer equipment loans and leasing options, but the repayment terms and minimum credit score requirements may vary. For those with bad credit, a larger down payment or longer-term loan may be required, and the application process may be more strict.
It’s important to consider the long-term impact on cash flow and credit history when pursuing equipment financing. Additionally, small business owners may also consider bad credit equipment financing options with higher interest rates and monthly payments.
Advantages of equipment financing for heavy equipment
If you are in the market for heavy construction equipment, then you are very likely a contractor. A contractor is a party that is hired to assist with the development of a project. A construction company will first hire a general contractor who manages and oversees progress. The general contractor then hires specialized subcontractors to carry out specific duties, including implementing and operating heavy equipment.
Heavy machinery and heavy-duty vehicles are key components of any B&C job. They are also extremely costly. This is why construction companies do not own their own heavy equipment.
As a contractor, you rely upon the integrity of your equipment to make money. So if equipment wears out and breaks down, as is the case over time, purchasing replacements can greatly blow your working capital.
This is where equipment financing can be massively beneficial. Purchasing heavy equipment is nearly impossible without a financial partner to lend you the funds. Another great benefit is that you won’t have to put up any collateral. Equipment loans are self-secured, so the heavy equipment purchased with the loan will provide the collateral to back the amount.
Traditional vs. alternative routes
When it comes to acquiring an equipment loan, there are two routes that you can take. The first is traditional financing. Traditional lenders are federally-backed institutions like banks. These large institutions are typical places that business owners turn to for loans.
The process of acquiring a loan through a bank is an arduous one. Banks often have very long application processes. Things can drag out, and it can take weeks or even months to get your money, assuming that you are approved.
Getting approved for a loan from a bank is exceedingly difficult. Your business must have existed for at least five years. It would be best if you had a lot of consistent revenue flowing in and out of your business, upwards of $500K annually. You also need to have outstanding credit.
On the other hand, alternative lenders are more relaxed regarding their requirements. So, if you are someone with bad credit, there’s no need to worry. Alternative lenders will overlook poor credit and approve you for a heavy equipment loan as long as you’ve been in business for at least a year and have $100K in annual revenue.
Another huge benefit of going through an alternative lender is the speed at which you can get the money. Alternative lenders like bit can get you approved within days.
Heavy equipment purchasing made easy
As previously mentioned, you can use equipment loans to replace old, worn-out heavy equipment. But there are other reasons to use equipment loans, such as growth. If you are looking to expand and need additional vehicles, that will be quite a hefty purchase.
The average cost of a bulldozer ranges from 30,000 to 200,000. Just buying one of those is going to be a massive expense. If you need to buy multiple, you will require some help.
Why Choose BitX Funding for Bad Credit Equipment Financing?
At BitX Funding, we’re committed to helping small business owners succeed, even if they have bad credit. Here are just a few reasons why you should choose us for your bad credit equipment financing needs:
- Flexible repayment terms: We understand that every business is different, which is why we offer flexible repayment terms to meet your specific needs.
- Quick and easy application process: Our application process is straightforward and can be completed in just a few minutes.
- Competitive rates: We offer competitive rates on our bad credit equipment financing options, so you can get the funding you require without breaking the bank.
- Expert guidance: Our team of experts is here to help guide you through the financing process and answer any questions you may have.
At BitX Funding, we can provide the assistance you require in the form of equipment financing. BitX is the optimal online space for small business loans. We have lenders that serve the B&C space.
We can get you the money you need to fund the purchase of a bulldozer or a new truck and trailer. If you have any problems with your credit, that shouldn’t be an issue either. We will do everything we can to assist you with acquiring your heavy equipment, and we can get you the money to fund 100% of the cost.
Our loan specialists are standing by, ready to walk you through every step of the way. Give us a call at 1-800-824-2407. If you need any more information on equipment financing for heavy equipment, apply now.
