While running a business, you need to buy or replace your business-related equipment sooner or later. Not every business owner is lucky enough to have a lot of cash ready. That is where equipment financing comes in handy.
You don’t have to worry about qualifying or getting the equipment financing fast. We’ll tell you the best way so that you can easily get small business equipment financing quickly.
Is Equipment Financing the Right Option?
Equipment funding solutions are the best option for small businesses looking for quick funds to purchase any equipment they need to help grow their business.
Since the equipment itself acts as collateral, business owners don’t have to offer a separate guarantee, and, they are likely to get approved for equipment financing.
With equipment financing
- You get quick access to cash
- Limited paperwork
- The equipment itself serves as collateral
Who Qualifies for Equipment Financing?
Business owners don’t find major difficulties while qualifying for equipment financing. Typically, how much you qualify for the loans will depend on the interest rate you can pay, the price of equipment, your business financial history, and your credit score.
Since equipment itself acts as collateral, equipment financing can still be a great option if your credit score and financial business history are less than perfect.
Different Types of Equipment Financing
It’s the loans that are taken with the purpose of purchasing equipment. Typically, the equipment ensures the loans, and in case you are unable to pay them back, the equipment gets handled as collateral.
Leasing equipment is another favorable option for business owners who like to trade out equipment frequently. In equipment financing, instead of acquiring money to purchase the equipment, you’re allowed to pay a fee to borrow the equipment.
You can learn more about these financing options from BitX Funding as they have more opportunities to offer you such as a $1 Buyout Lease, FMV, and 10% option lease financing. But typically, equipment financing and loans are widely used by small business owners.
How Do You Apply for Equipment Financing?
Generally, equipment financing applications are simple and mostly depend on the lender you’re working with. You just need to present your credit score with tax returns and business information (financial).
Documents you might need:
- Voided Business Check
- Bank Records
- Credit Score
- Tax Returns (Business)
- Equipment Quote
Banks are not the ideal option when you are looking for easy approval, along with ample benefits of the repayment process. That is why most business owners go for online lenders. Online lenders provide you with fixed interest rates that mostly start from 7% to 30% with set term lengths.
The Best Equipment Financing Services
If you are someone looking for equipment funding solutions, then you must check out BitX Funding equipment financing services. They are one of the leading online lenders based in the USA that already helped plenty of small businesses.
What do you need to qualify?
- Business must be in process for one year
- Have a minimum of 600 on your credit score
- Revenue $100,000 > annually
Their interest rate is 7% over a 3-year (or 36-month) term. Their standard APR is 12% so your $10K piece of equipment will cost you $11,957.15, along with a monthly payment of $332.14.