Understanding the financial side of equipment financing can feel overwhelming. Young businesses often face unique challenges in their initial startup years, such as generating enough cash flow and establishing business credit.
Beacon Funding provides a straightforward solution with its financing programs for getting equipment. With benefits like tax advantages with Section 179 and flexible financing plans, Beacon Funding makes it possible for businesses to get the equipment they need without risking their financial security.
In this article…
- Understanding Start-Up Equipment Financing and Leasing
- Qualifying for Start-Up Equipment Financing
- Start Growing Your Young Business with Beacon Funding
SEE IF YOU QUALIFY
Explore how Beacon's financing choices can help your startup business thrive!
Understanding Start-Up Equipment Financing and Leasing
Equipment financing is a loan agreement where the borrower acquires needed equipment for a low monthly payment. Once the term is over, the borrower keeps possession of the equipment and takes full ownership and keeps generating revenue with it.
Equipment leasing typically includes a purchase option at the end of the term ranging from $1 to 10% of the equipment’s original purchase price. At the end of the lease, the borrower can then take advantage of either purchase option to take full ownership of the equipment.
If your business is interested in low monthly payments, then equipment leasing may be the right option for you.
Qualifying for Start-Up Equipment Financing
Understand Your Financing Option
Familiarize yourself with the various financing and leasing options available. Each has its benefits and understanding them will help you choose the right path for your business.
Evaluate Credit Profile
Your credit score plays a crucial role in qualifying for financing. Lenders use it to assess your reliability and the risk of lending to your business. Before applying, review your credit report and address any issues that might affect your approval chances.
Prepare Financial Documents
Be sure to have your financial documents in order. This includes your business plan, cash flow statements, and any other relevant financial records. These documents help evaluate your business’s financial health and your ability to repay the loan.
Understand Loan and Lease Terms
Review the terms of the loan or lease. Understanding these terms ensures there are no surprises later.
Additional Perks with Beacon Funding
At Beacon Funding, you have access to additional perks like tax advantages, flexible payment plans, and an easy approval process designed to make acquiring your equipment as smooth as possible.
Steps in the application process
- Quick and Easy Application. Fill out our online application form and provide some basic information about your business and equipment needs.
- Discussing Your Business Goals. Get a quote from one of our financing consultants within 24 hours. They will work with you to find the best financing option for your budget and goals.
- Submitting your Credit Package for Approval. After discussing your buisness goals, your dedicated financing consultant will submit your credit package for approval.
- Approval Letter & Documentation. The goal of our approval will be to clearly and transparently outline all the key requirements, costs, and obligations to your equipment financing transactions. Once you are comfortable with your approval, Beacon Funding will send you your formal equipment financing documentation via DocuSign.
- Accepting and Using Your Equipment. Once your documentation is complete, you can inform Beacon Funding when you anticipate pickup/delivery of your equipment. Once you do, we will pay the equipment seller and you can begin making profits with your new equipment!
Start Growing Your Young Business with Beacon Funding
Choosing Beacon Funding for your start-up equipment financing offers significant advantages over traditional lenders. At Beacon Funding, we want to see your young business succeed. That’s why we offer a comprehensive evaluation process, flexible equipment financing options, and customizable loan terms.
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