If you are the owner of a small business — or are thinking about starting one — you know that equipment is an essential part of running a successful company. Offices need copiers and printers, restaurants need stoves and ovens, and retail stores need cash registers and security sensors.
Whatever your business is, you need equipment in order to run it! Most entrepreneurs know that it’s far wiser to lease your equipment, as opposed to purchase it for keeps; leasing makes it much easier to return, exchange, or fix the equipment if any issues arise. That being said, leasing equipment requires money as well… sometimes a lot. How can you get an equipment loan for your small business?
1. Have Strong Credit History
As with any loan, the first thing that loan officers will examine is your credit score. Your credit history speaks volumes as to your trustworthiness, reliability, and professionalism. So make sure that you comb through your history to look for any possible errors before meeting your loan officer, and be prepared to explain any blips or questionable moments in your credit.
2. Prepare a Reason
Why do you even need the equipment to begin with? Loan officers will want to see that you have a plan for how the equipment will be used. Be prepared to explain in clear, succinct terms.
3. Know Your Repayment Plan
You will have to propose and discuss a repayment schedule with your lender, so think about that beforehand as well. How long will you need the equipment for, and when can you reasonably pay back the loan? Be prepared to discuss this. Keep in mind that the most important thing for the lending institution is that they will receive their repayment in full, in a timely fashion. So take good care to emphasize your creditworthiness and reliability.
Biz2Credit (www.biz2credit.com) can help you figure out the best path to take. Visit the website or call (800) 200-5678 for help.