Navigating the World of Small Business Financing

Equipment financing allows you as a small business the chance to acquire the technology, machinery and tools you need without having to pay the whole cost upfront. You’ll make small, regular payments, which makes it easier for you to manage your cash flow and budget effectively. There are also many benefits to securing an equipment loan, including:

Protecting Cash Flow

Small business equipment loans give you the chance to preserve your cash flow. For businesses that have to maintain liquidity, this can be a lifeline.

Better Equipment

When you take out a business loan, you will also gain access to better equipment. You can also secure more advanced equipment that would otherwise be out of reach.

Building Credit

If you successfully pay your business loan, this can build your credit score, which helps to open the door to future options regarding financing.

Types of Equipment Financing

When taking out a business equipment loan, you also have numerous options. They include:

Loans

With a loan, you will borrow a lump sum and then pay it back over time. You’ll pay interest, but when it’s paid, it’s yours outright.

Line of Credit

Line of credit can be used to give your business flexible financing when you need it. It’s like a credit card for business expenses and gives you the chance to make any equipment purchases you need. You may have to back this with a business asset, for collateral.

Applying for an Equipment Loan

Applying for an equipment loan is relatively easy. All you have to do is go online, choose a provider and then see if you’ll be accepted. Your acceptance rate will depend on your credit score, but it can also come down to the amount you are trying to borrow, how long you have been in business and your general income over the years. Things you can do to improve your approval rate include making sure that you have a good credit score or at least one that’s above 650. Having a business plan will also aid you in taking out a loan, as it shows the lender that you’re able to pay back what you’re borrowing, without defaulting.

Applying for a business loan might seem like a simple process, and it is. You do however need to make sure you’re not paying steep interest rates, and that you take note of any complimentary services the loan provider may offer. 

We Can Help!

If you need help applying for your business loan, then we’re here to give you all of the support you need. You can call us at 877.433.4241 or 610.337.2464. When you do, we can then talk you through the options you have available.