So, if you think one of these top equipment loan options might be right for your business, you may be wondering how to actually get the financing you need.
Find the equipment you’d like to purchase: The first requirement for getting equipment financing is finding and choosing the piece of equipment you’d like to purchase. With the application process, many lenders will require that you offer an equipment quote, as well as details about the equipment and its condition.
Therefore, you’ll want to make sure that you have this step completed from the beginning.
Evaluate your qualifications: Next, once you’ve done the necessary research on the equipment you’d like to purchase, you’ll be able to start looking at your options and determining where you’ll be able to qualify.
As shown above, the specific requirements that you’ll need to meet to qualify for business equipment financing will vary based on the lender—generally, however, qualifications (annual revenue, time in business, credit score) will be much more flexible compared to other types of loans.
With this in mind, though, as we’ve discussed, the better your qualifications, the more likely you’ll be to access the most ideal rates and terms.
Complete your application: Finally, after you’ve evaluated your qualifications and determined which lenders are the best options for your business, you’ll be ready to prepare and submit your loan application.
Typically, you’ll be able to complete your equipment loan application online very quickly and easily. Equipment financing usually requires minimal documentation and a streamlined application process. This being said, however, you can expect to provide some if not all of the following:
- Driver’s license
- Voided business check
- Bank statements
- Credit score
- Business tax returns
- Equipment quote
Generally, online lenders can process and fund business equipment financing applications in just a few days, sometimes faster. If you apply for an equipment loan through a bank, on the other hand, you’ll likely see a slower time to fund.
Of course, before you sign an equipment loan agreement and enter the closing process, you’ll want to compare options from multiple lenders to ensure that you’re getting the best, most affordable deal for your business.