The 5 Things You Need to Know About Financing Equipment

It’s estimated that 78% of small businesses in the U.S. rely on financing equipment. Having the right equipment is essential to staying competitive, working efficiently and ensuring a workplace environment that runs smoothly. Equipment that doesn’t work properly, or is not up to standard, can create problems and overall frustration.

Upgrading or purchasing new equipment can establish the right groundwork for your business to grow and even become more profitable. Investing in new equipment is an investment in your business’s future.

Here are the five things you need to know when considering financing equipment.

1. How does an equipment loan work? An equipment loan is to help you finance the equipment your business needs, from heavy-duty machinery to general-purpose equipment. The loans have flexible terms, with financing up to 100% financing, up to 84-month terms and no set minimum credit score (though 620+ credit is preferred). Loans sizes are available from $5,000 to $5,000,000. Loans up to $150,000 can be processed with just an application.
2. What if I’m a startup company? For startup companies, a down payment is generally required. You will also need a 700+ credit score and strong compensating personal financials and industry experience. Even though there is no minimum time in business, three months of bank statements may be required.
3. What kind of equipment can be financed? Any new or used “mission critical” equipment can be financed. Equipment is considered mission critical if it is essential to the operation of the business. Most industries are eligible though some restrictions may apply.
4. What kind of payment structures are available? The payment structure is customizable to the needs of the business. For example, a business might need a payment plan that is delayed, seasonal, step, semi-annual or something else that works for them.
5. Who is the right partner for equipment financing? At Alliance Capital, we have partnered with one of the nation’s top equipment financing lenders with a nationwide footprint. This means we can help businesses in every state, usually have an approval within a few hours and provide funding often the same day!

If you are considering equipment financing for your business, give us a call at 205.982.7900. Or you can apply now at the button below.