Are you looking for equipment finance for car repair or buying a car? Do you know that more than 80% of the loan applications for equipment finance are rejected by banks? Banks have some straight line loan approval process and they cannot approve your loan without proper documentation. Apart from that, equipment finance from banks will take more than a month and you need to wait for a long time to set up your new business. In this regard, you can choose some private lenders to avail equipment finance because they can approve your loan within 48 hours. Plus, you do not need to visit their branch and you can apply for the loan on their official website. Then you can upload your documents on their portals and after verification of your documents, they will transfer your loan amount to your bank account.
Tips to choose the best Equipment Finance Company
Today, most of the companies are leasing their equipment because they do not have sufficient funds to purchase their heavy machinery. But in the case of leasing equipment, you need to pay the recurrent cost and you cannot get the resale value of your equipment. Plus, you cannot count such leased equipment in your assets because you have to return such equipment to the leasing company after using them. Now you can apply for equipment finance and you can buy heavy machinery for your business. Before you choose any equipment finance, you must check the following things:
- Research: Do some research online and then choose the best equipment finance company. You can find many online lenders and you must check their license, terms and conditions, loan terms, repayment structure, rate of interest, processing fees, and other hidden charges. If you have any confusion, then you can consult with your financial advisor or you can call the equipment finance company to clear your doubts.
- Size of the business: Always ask the equipment finance company about their terms and conditions because most of them do not work with startups. If you have a startup then you cannot produce your financial documents and you will not be able to take any loan from banks. In this case, you can go for low doc commercial loans and use the amount for your equipment. Otherwise, you can contact some lenders that work with small businesses and they can help you to get the loan at a low rate of interest. You can check the portfolio of the equipment finance companies and choose the best one who has already worked with similar businesses. So they can easily understand your needs and approve your loan faster.
- Nature of the equipment: Different lenders work with different kinds of equipment and they do not cover all types of industries. For example, few lenders can provide the finances for the software companies only and they can disburse a small amount for leasing or purchasing the software or IT support. Some of them can also provide huge loans for the manufacturing industry and plants for purchasing their equipment. So you need to select the best company according to the nature of your business. Apart from that, you need to submit a project report to the company to avail such loans.
- Customer support: You may need to consult with the equipment finance company for clarification of debit lines and you must check their customer support system. If they are not able to resolve the problems within a few hours then switch to another company. It is better to read reviews of different finance companies to choose the best. You can also search for the best equipment finance company online and read their reviews to choose the best finance company.
So now you can do your own research on equipment finance and choose the best lenders for your business.