Obtaining the necessary funding for equipment financing can be one of the easier aspects of starting up a business, assuming you know where to look and what the process is all about.
Here are some of the most important things to be aware of when you are looking for equipment financing.
Understanding the process
When you’re going through the application process, you can expect to have to fill out an online application form, interview with a consultant, and then provide all necessary financial documents required by the lender. A financing consultant will review your application and render a decision, often in as little as 24 hours. Once you’ve agreed on details with your lender and have signed an agreement, arrangements can be made for the equipment delivery and pick up. When it is delivered, you’ll have the opportunity to review it, to make sure it’s in good working order before the lease period actually begins.
Finding the right terms
It’s very important that you find the right kind of terms for your equipment financing, because you will be locked into the agreement for probably two or three years. One structure which works well for many business owners is the lease-to-own option, in which you are constantly working toward owning the equipment at the end of the lease.
There is also a 100% financing type of structure available, which requires no down payment, and which pays for the entire cost of the equipment, spread out over monthly payments. The deferred payment plan allows you to put off your first payment for up to 90 days, and this will allow you to increase your incoming revenue stream for several months, before having to make your first payment.
Equipment financing with Value Capital Funding
Quite often, all that’s needed for a business to elevate to the next level is a piece of major equipment which will improve business.
If your business is in this situation, contact us at Value Capital Funding, so we can discuss some possibilities for getting you the necessary funding for your equipment.