Everything You Need to Know About Equipment Financing Pre-Approvals

By Amanda Haraden| Mar 16, 2022| 3690 Views
Everything You Need to Know About Equipment Financing Pre-Approvals

Getting ready to expand with new equipment, but don’t know where to begin? Before you start shopping, consider getting pre-approved for financing. Find out exactly how much you can afford so you can budget and be prepared. The best part is that its commitment free!

Ready to learn everything you need to know about equipment financing pre-approvals? Let’s get right to it.

What are Pre-Approvals?

To put it simply, a pre-approval is an informal financing plan that allows you to budget and plan ahead for new equipment. By applying for a pre-approval, you can find out the terms of a potential financing plan without any commitment. Pre-approvals let you see details of a potential payment plan that a simple quote wouldn’t offer.

The best thing is that they are in no way binding. When you apply for an equipment financing pre-approval, you aren’t entering into a legal agreement. They are a commitment-free way to find out exactly how much you can afford to spend on your next equipment purchase. Applying for a pre-approval isn’t a trick to get you locked into a financing agreement, it will help you plan and budget.

Benefits of Pre-Approvals

So now you know what pre-approvals are but what exactly are the benefits? The perks of pre-approval vary with each situation, but there are a few universal benefits:


Pre-approvals help to pinpoint a budget and combat any uncertainty. When it comes to budgeting for equipment, it can be difficult to know exactly what you can afford. You can spend less time guessing if you can afford a certain piece and more time putting your new equipment to work.

Negotiation Power with Equipment Sellers

When you go into a negotiation with a set budget, your confidence is up and you’re less likely to be talked into a higher price. In addition, equipment sellers will take you more seriously if they know you’ve planned ahead and are ready to buy.

Enjoy a Faster Closing Period

With a pre-approval, the entire process is sped up. If you know you’ll need new equipment in the next few months or so, but don’t have a specific piece picked out, then a pre-approval would be the perfect place to start. Even if you aren’t thinking about purchasing equipment just yet, you will be prepared when you’re ready.

Equipment Financing Pre-Approvals

When You Should Get Pre-Approved

Shopping Around

Before you even start surfing the web for new equipment, you will know how much you can afford to spend, making the shopping experience that much easier. With a budget in mind, you have the freedom to shop around to find the best price.

Attending a Tradeshow

If you plan to attend a tradeshow with the intent to shop for new equipment, you will want to consider getting pre-approved for equipment financing before the tradeshow. Not only will you have a budget but you will have some negotiating power with vendors. In some cases with a pre-approval, you might be able to get approved for financing that day!\

Get Pre-Approved

Now that you know all about pre-approvals, you can browse the best possible equipment for your business with confidence and be ready to go when the time comes. When you apply, find a financing company that can give you a complete pre-approval package. Beacon Funding offers commitment-free pre-approvals with a package that includes more than just your maximum financing amount. It also includes your monthly payment estimate, maximum lease amount, end-of-term options, and other details to help better understand what you’re getting.

Don’t let feeling intimidated by equipment costs stop you from financing equipment for your business. Now that you have insight on pre-approvals, you can use it as a tool that will lead you on the right path to financing success. When you are ready, head to our easy application to start the pre-approval process.

Download our Perks of Pre-Approval E-book

Amanda Haraden
Amanda Haraden

P: 847.897.2721 |  ESchedule a Meeting with Me

As a Senior Financing Consultant at Beacon Funding, Amanda works with businesses to help define their goals and help meet their needs.