When it comes to acquiring equipment for your business, there are two standard financing options: a loan and an equipment lease. These two options depend on the type of equipment you need and your business’s credit history. In addition, if you’re a startup, your credit score might be too low to secure a loan. A lease or loan might be your best option in such a case.
When looking for an equipment lease, you may need to present your business plan, profit and loss statement, balance sheet, and cash flow statement. You may also have to provide personal financial information such as your credit score and APR to qualify for a loan. Once you’ve completed the preliminary paperwork, the equipment provider will walk you through the lease and make it official.
How Does Equipment Financing Work?
The basic concept of equipment financing is that you apply for a loan against the value of the equipment. Lenders typically require a down payment of 10 to 30 percent of the equipment’s total value, and this down payment is used as collateral. Once you have paid off the equipment, you can use the funds to make payments and upgrade your business.
Getting equipment financing is not the most effortless process, so be sure you have your business’s finances and financial history ready. You’ll need to provide your business’s financial information, such as a quote for the equipment. Once you have your quote, you’ll need to present the paperwork. You’ll want to have it handy, so you can prove that you’re the right applicant for the loan. Once you’ve provided the necessary documentation, the next step is to get the quote for your new equipment.
Most equipment financing companies specialize in supplying commercial and industrial companies with equipment. These flexible financing options have the lowest interest rates and require no down payment but a high initial down payment.
A restaurant owner’s financial situation may be difficult to assess. They may not have enough cash to purchase new equipment immediately, so the best way to plan for the future is to secure equipment financing. This type of financing can help restaurant owners make large purchases without breaking the bank.
While you can’t use bank loans to finance your new restaurant equipment, a bank loan will allow you to meet your needs and meet your obligations. There’s no reason to delay your business because you can’t afford to buy the equipment you need.
Are you looking forward to starting a business? If so, don’t hesitate to check out the right option for you, from restaurant equipment financing to software financing; rest assured that you’ll find something that can help you as you visit NOREAST Capital Corporation right away!