Can a Small Business Qualify for Equipment Financing?

Large corporations use equipment financing constantly to improve their operations. Manufacturers rely on equipment loans to increase production and purchase things such as industrial ovens, autoclaves, production lines, laser equipment, and countless other industry-specific items. Commercial construction businesses also depend on this type of financing for loaders, backhoes, excavators, dump trucks, specialized welding equipment, and many other systems.

What about small businesses? Can smaller companies qualify for equipment financing and afford it?

Comfortable Funding Options for Any Business

To get straight to the point, the answer is yes. Small businesses can qualify for equipment loans without problems. Getting equipment financing is generally better for small business accounting compared to using the business’s capital to make the purchase.

One reason is that equipment loans already have collateral provided: the equipment you’re planning on purchasing. That means you don’t have to come up with outside collateral. There are down payments typically, but they’re relatively low.

Equipment funding is also easy to qualify for. The credit score requirements are accessible even for companies that have past bankruptcy issues. You can benefit if you have better credit, but it’s not a requirement to get good interest rates and excellent loan terms.

Flexible Programs for Monthly Payments

Equipment loans are a type of alternative lending. That means they provide greater flexibility for terms compared to conventional bank loans. You can pick out equipment financing options that fit your company’s financial needs closely, including a variety of monthly payment options, down payment options, and interest rates.

Small business owners enjoy this freedom because it helps to preserve working capital. You decide how much money you have available each month to spend on equipment, and the financing company can generally help you design a custom payment plan that adapts to your needs.

A Great Reputation with Customers

Equipment loans offer many benefits for your business. They can help you provide services of the highest quality and get the job done on time. For a small business, having a great reputation with local customers is essential for success. You can apply for equipment financing and get the things your business depends on quickly. You can compete with larger businesses successfully.

Funding Options for Every Industry

When you work with a lender that understands the ins and outs of equipment loans, it’s simple to get pre-approved for financing. Businesses in many different industries can benefit, including restaurants, construction companies, retail stores, healthcare businesses, and many others.


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