Now that you’ve taken a clear look at both your equipment needs and your qualifications, you can start using that information to find a lender who matches your needs.
Plenty of lenders offer equipment loans for businesses. (We’ll show you some of our favorites below.) The trick is finding one that offers financing for the type of equipment you want, the amount of money you need, and to business owners with your qualifications.
So if you need a $500,000 loan to buy used agricultural equipment, you can narrow down your search to lenders who offer that kind of financing. No need to waste your time on lenders with loans up to just $250,000 or who only finance new kitchen equipment. Likewise, if you’ve only been in business for a year, you can immediately cross off any lenders that have long time-in-business requirements.
When you’ve narrowed down your options, you can start to compare them by looking at key factors:
- Interest rates
- Origination fees and other loan fees
- Down payment requirement
- Loan repayment term
- Application response time
- Funding turnaround time
As you compare these factors, you should be able to figure out which lender works best with your business’s timeline, budget, and cash flow.
If you’re having a hard time finding a lender―especially because of your borrower qualifications―you can go with a generic business loan instead of an equipment loan. (Our picks for the best small-business loans can be used on equipment, though they aren’t equipment-specific). Yes, you may end up with higher rates and shorter terms―but that might be preferable to not getting your equipment at all.
Once you’ve found a lender, you’re ready to get your financing.