If your small business is in need of specialized equipment which will help you to grow and to accomplish your objectives, there are bound to be some questions you have about equipment financing. Some of the most important questions are answered below to assist you with your decision-making.
Is It Necessary to Have Perfect Credit?
No, it is not really necessary to have perfect credit, especially when you’re working with a lender who is knowledgeable about your industry and understands your business. While banks may be much more likely to turn you down, alternative lenders are willing to work with you to supply the funding you need.
What Are the Differences Between Equipment Leasing and Financing?
When you get equipment financing, you retain ownership of it indefinitely, whereas, during leasing, it’s the leasing company which owns the equipment. This also means that the leasing company would be responsible for maintenance and repairs, whereas if you own the equipment yourself, that would all fall on you.
How Long Does a Typical Lease Last?
There are a number of factors which go into the determination of how long a lease will last. The first of these is how much of a monthly payment your business can manage, but the cost of the equipment is also a huge factor. Generally speaking, most equipment leasing will cover a span of 36 months and will be less than 72 months.
What Is Flexible Financing?
Flexible financing refers to a kind of repayment plan which breaks away from fixed monthly payments and includes other kinds of terms. It might be that you skip the first three to six months of your payments, or you may start with a very low payment and gradually increase them over time. Flexible financing is generally set up to accommodate what a small business owner can comfortably repay in order to pay off a lease or a loan.
Interested in Equipment Leasing?
Most small businesses require specialized equipment which will help them achieve their objectives. If your small business would benefit from equipment leasing or some other kind of financing to get the equipment you need, we may be able to help. Contact us at Steadfast Funding Partners, and discuss some options with our financial experts.