How to Qualify for Equipment Financing
Equipment financing is a vital lifeline for many small businesses. What’s more essential to your business than the equipment you need to make your products? Of course, as you know, equipment is not cheap, and purchasing your own can put a massive strain on your finances. Often, the need to acquire or replace a particular piece of equipment arises at a time when you simply don’t have the cash flow for it. Yet your business can’t afford to go without it.
Equipment financing is the best way out of this double bind. You can keep your business running at optimum levels without taking on unmanageable expenses. Here’s how it works.
What is equipment financing?
Equipment loans enable you to manage the costs associated with acquiring large, expensive, essential pieces of equipment. Instead of having to purchase the equipment outright from your own funds, you can obtain the money from a lender, such as Kore Capital Corporation. You can then pay back this loan over a fixed term, in affordable installments. The equipment itself acts as collateral against the loan, meaning that the lender can repossess it should you default on your payments. Once the loan is repaid in full, you own the equipment outright.
How do you qualify for equipment financing?
When applying for an equipment loan, we will take several factors into consideration. Firstly, your personal credit score but an essential element. We will also need to see a business plan detailing your vision for your business and proposal for future growth that will justify the expenditure on equipment. This plan should include a statement of revenue, as well as a profit and loss statement and balance sheet. With sufficient evidence that the expense of purchasing the equipment can lead to profitable growth, you will be well on your way to acquiring what you need to carry your business forward.
Do you need equipment financing? Contact Kore Capital Corporation and let us work out a short-term financing solution that works for you.