The best equipment financing companies provide loans to small businesses and let them invest in tools and machinery. By investing in necessary tools and machinery, a business is able to grow its business and stay competitive in the market. You can use an equipment loan to spend on anything from furniture, medical equipment, farm machinery, and other necessary stuff.
In this article, you will learn about some good equipment financing companies that offer loans with a variety of benefits. However, before that, you will also learn about the major factors of equipment financing companies. Apart from that, we will also share with you some of the major pros and cons of equipment financing companies. Hence, to learn more, read on through to the end of the article.
What Makes The Best Equipment Financing Companies?
According to NerdWallet,
“Equipment financing is a loan for purchasing machinery and equipment essential to running your business. You can use an equipment loan for anything from office furniture and medical equipment to farm machinery or commercial ovens. Small-business equipment loans are available from bank, online and SBA lenders.”
However, in addition to that, there are also equipment financing companies that focus on providing only small-business equipment loans. These types of loans help businesses to invest in machinery and tools that they need. These additions to tools and equipment help businesses increase their efficiency. Apart from that, businesses are also able to keep up with competition in the marketplace.
What Are The Best Equipment Financing Companies?
According to Investopedia,
“As with most financial products, the better your credit, the better the financing options and products offered to you. […] you should plan to have a credit score of at least 650 to 700 if you want to receive the most competitive interest rates and repayment terms. There are some lenders willing to forgo these limits, though, accepting scores as low as 575 or even considering all credit scores.”
There are some equipment financing companies that offer financing for 100% of your purchases. In addition to that, they provide competitive interest rates and make lending accessible to companies. Hence, it is possible for startups and established businesses to invest in business growth. As a result, they are able to continue their operations with a cash outlay.
5 Best Equipment Financing Companies To Look For In 2024
The Forbes Advisor adds –
“Equipment financing is offered through many traditional and online business lenders, with loan amounts ranging widely based on the cost of the items being financed. Likewise, loan repayment terms generally mirror the usable life of the equipment—often between three and 10 years. Lenders typically let businesses finance between 80% and 100% of the equipment purchase, but a down payment of around 15% is most common.”
The following are some of the major equipment financing companies that you must consider in 2024:
1. Crest Capital
Crest Capital offers equipment financing up to $500,000. Furthermore, they are also fast with their loan decisions.
|Fast approval of loans
100% cost financing
Loans up to $500,000
No costs for closing
|Startups do not get loans (need at least 2 years of financial history)
Vague collateral requirements
2. Balboa Capital
If you want equipment loans for heavy equipment, Balboa Capital is one of the best lenders. Furthermore, they also offer competitive rates.
|Fast approval of loans
Good ratings from borrowers
Loans up to $500,000
|Contradictory credit score requirements
Repayment terms are limited
Requires $100,000 annual revenue to apply
3. National Funding
This equipment financer is the best choice for growing businesses. Even six-month-old startups can receive a loan.
|Approves even low FICO score
No down payment
Approves used equipment
Good consumer reviews
|Offers loan up to $150,000
4. US Business Funding
One of the best aspects of US Business Funding is that you can purchase both new and old equipment with the loan. Apart from that, you can also allow a third party.
|Equipment loans up to $5 million
Fast decisions and approval
Funding is available throughout the day
Good repayment terms
|Short-form applications can get only up to $75,000.
Need at least a 2-year business history
Offers finances in lease form
5. Currency Loans
This company offers loans to businesses with bad credit or no credit. Here, there are loan options for all credit profiles.
|Loans for all credit profiles
No down payment
Financing up to $500,000
Fast approval of loans
|The repayment term is only up to 72 months
Some loans come with fees
Pros And Cons Of The Best Equipment Financing Companies
The following are some of the major pros and cons of equipment financing companies:
Here are the major pros of equipment financing that will benefit your business:
- Many companies will offer you fast financing. Here, some online lenders can offer you loans within 24 hours.
- Some companies will offer you equipment financing without any additional collateral.
- You can spread the cost of the equipment financing over the life of the loan.
- It helps you build credit, as it is easy to qualify even if your company does not have an operating history. Here, all you need to do is ensure that your lender reports your loan activity to credit bureaus.
Here are a few cons of equipment financing companies that you will need to be aware of:
- You cannot use these loans apart from equipment for your business.
- With many equipment loans, you will first need to make a down payment of as much as 20%. Hence, if you are purchasing something expensive and the loan is big, your initial cost will be very high.
- In most cases, equipment loans are costly. This is because they come with a high rate of interest as compared to term loans.
- In many cases, the term of the loan can outlast the life of the equipment.
Hope this article was helpful for you in getting to learn about the best equipment financing companies. However, the type of finance you will receive from a particular lender will change as per the amount, type of equipment, and the lender’s options. The term of the loan also depends on the type of lender you are applying to. Do you have more suggestions for equipment financers? Consider sharing them with us in the comments section below.