This video was made by Aaron Rustebakke, who owned and operated his own business for 8 years before moving into equipment financing in 2019. As a Financing Consultant at Beacon Funding, Aaron works with businesses to help define their goals and craft the right flexible financing plans to meet their needs.
Discuss Your Start-up’s Equipment Needs With a Consultant Today
Are you looking for equipment to grow your business, but haven’t found the right lender to approve your start-up? Beacon Funding helps hundreds of young businesses every year get the equipment they need. To see if you qualify, schedule a quick conversation with a financing consultant.
Click here to talk with a financing consultant today: www.beaconfunding.com/benefits
Apply for start-up financing: www.beaconfunding.com/apply
Supporting Your Start-up’s Growth with Equipment Financing
According to the U.S. Bureau of Labor, 20% of new businesses fail within the first two years of starting, and 45% of them during the first five years. This statistic is largely due to a lack of access to capital. Rather than tying up all the money you have on hand, equipment financing could give your company the flexibility to use that cash in other areas of your business that can provide the conditions for growth.
When I talk to new businesses, I often hear hesitation about financing because they’re worried about not getting approved for a loan. That’s a real concern because they don't have a history of repaying loans yet.
To give your business its best start, read the article to learn which lenders approve start-ups, what criteria they look at to get you approved, and how to utilize the equipment financing to strengthen your chances for success.
Not Getting Anywhere With Your Bank? Consider Other Equipment Financing Options
Start-ups are riskier in the eyes of traditional lenders, like banks. Why? New businesses, with less than two years of pay history, often haven’t established business credit. It takes time for borrowers to prove they have the ability to overcome obstacles, generate a profit, and prove they can repay a loan.
So, how do you find a lender that’s willing to support you?
Despite what you might have heard, start-ups do get approved for financing. Your chances of approval increase when you work with an equipment financing provider with a history of working with start-ups.
Specialty equipment financing lenders, like Beacon Funding, understand how critical decorated apparel equipment or commercial truck is to your business model. To strengthen your chance of an approval, try providing your lender with personal financial statements and personal credit history.
Beacon Funding will also consider other qualifying factors to approve your start-up, such as:
- Additional collateral
- Industry experience
- Cash down
- A strong business plan
The more strengths you have in each area, the better your chances are at getting approved.
I’m Already Approved for Start-up Financing. How Do I Lower My Financing Cost?
As a rule of thumb, your credit quality will directly correlate to your cost of financing.
Your start-up business doesn’t automatically mean you have low credit quality. It just means you need to bring enough strengths to the table to lower your cost of funds.
Over time, you can expect your cost of funds to decrease when you acquire future equipment. As you’re in business longer, it’s important to establish a good pay history. This will help establish strong business credit, build your business credibility, and become an essential part of business expansion.
Talk With Your Financing Consultant About Your Start-up’s Needs
If you’re curious if you’ll qualify for start-up financing, talking with a financing expert is a quick way to get answers based on your unique situation.
To schedule a quick talk with an equipment financing consultant, visit www.beaconfunding.com/benefits.
Beacon Funding’s financing consultants can get you on the path to equipment financing today – regardless of the age of your business.