Building business credit is essential for long-term growth and success. At Beacon Funding, we help businesses establish and improve their business credit through fast and easy equipment financing.
By partnering with Beacon Funding, you can empower your clients to build their creditworthiness, allowing you to close more deals, and keep them returning to you for bigger transactions!
In This Article...
- How Equipment Financing Builds Business Credit
- Advantages of Business Credit
- The Power of Business Credit in Action
- Supporting Start-Ups and Businesses with Challenged Credit
- Why Beacon Funding Stands Out
How Equipment Financing Builds Business Credit
At Beacon Funding, we report every equipment financing payment your customers make. We report their payment history to major credit bureaus. This consistent reporting builds your customer’s business credit history, giving them the chance to boost their financial credibility and long-term buying power.
As businesses pay their financing payments and improve their credit history with Beacon Funding, they can qualify for better terms and larger transactions. This enables them to return to equipment sellers like you to acquire the latest equipment models and technology.
The Power of Business Credit in Action
In commercial underwriting, lenders evaluate creditworthiness using two critical metrics:
- Comparable Borrowing History: Lenders compare a business’s repayment patterns to similar businesses to determine reliability.
- 50% Indicator: A business is considered creditworthy if it has successfully repaid at least 50% of its previous loans.
This methodology rewards businesses that establish a strong credit track record. For instance, a borrower with no credit history might start small but can quickly scale as their repayment credibility grows. By partnering with Beacon Funding, you can offer your clients a pathway to building strong business credit, which in turn enhances their purchasing power and ability to grow. This not only benefits your clients but also strengthens your business relationships and drives more sales. Let’s work together to help businesses thrive!
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Example: How Business Credit Helps Your Customers Grow
Background: Businesses with no business credit might only qualify for up to $100,000 in equipment financing since they have not established any comparable borrowing history. If their ultimate goal is to scale their business, they will need business credit to grow. Using only cash can be limiting and can put your business at risk of lacking liquidity. Financing under personal credit has its limits especially once you establish a mortgage and other personal loans. However, as they build business credit, they have the potential to grow quickly.
Example: If a Beacon Funding customer finances a $100,000 piece of equipment, after 12 timely payments they’d be eligible for a $200,000 loan. That is all it takes for a business to demonstrate its ability to manage payments and establishes comparable debt. This process repeats itself after an organization has shown its ability to repay loans of similar sizes. So, in about 4 years that business could qualify for up to $800,000 in commercial loans!
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Advantages of Business Credit
Building a solid credit profile offers businesses significant advantages:
- Separation of Business and Personal Credit: Protects personal finances by ensuring business expenses are handled independently, reducing personal risk.
- Improved Access to Capital: Enhances eligibility for larger credit limits and better loan terms, supporting growth and operational needs.
- Conserving Cash and Resources: Preserves working capital by financing expenses over time, maintaining financial flexibility for unforeseen challenges.
- Boosted Credibility and Trustworthiness: Builds confidence with lenders, suppliers, and partners, increasing opportunities for favorable terms and strategic partnerships.
- Tax Advantages: Enables businesses to leverage tax benefits like Section 179 deductions, offering significant cost savings.
- Scaling Opportunities: Facilitates expansion by providing access to funding for assets, staffing, and operational growth.
- Mitigating Personal Risk: Distinguishes business and personal finances, safeguarding personal credit and assets from business liabilities.
Investing time and effort into establishing and maintaining business credit not only supports your business's financial health but also positions it for sustainable growth and success in competitive markets.
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Supporting Start-Ups and Businesses with Challenged Credit
Young businesses with less than 2 years in business often struggle to secure financing due to limited or no credit history. At Beacon Funding, we understand not everyone starts with a perfect credit score.
Since 1990, we’ve supported thousands of businesses in their journey. That’s why we offer financing solutions specifically tailored to meet the needs of start-ups who have less-than-perfect credit.
Unlike traditional banks, Beacon Funding evaluates the unique potential of start-ups and provides opportunities they may otherwise lack. By approving businesses for equipment financing and reporting their positive pay history to the major credit bureaus, we empower many businesses to build or improve their business credit for long-term success.
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Why Beacon Funding Stands Out
Niche Lending Expertise
With over 35 years of experience, Beacon Funding specializes in financing equipment for core industries such as vocational trucks, decorated apparel, and landscaping equipment. Our deep understanding of industry-specific machinery and its resale value allows us to provide flexible and aggressive lending options that outpace traditional financial institutions.
To date, we’ve financed almost $2 billion in equipment and supported nearly 30,000 transactions, helping start-ups and established businesses thrive. Our strong reputation speaks for itself—7 out of every 10 applications are approved.
We are proud to maintain a 4.3 out of 5-star rating on Google and hold accreditation from the Better Business Bureau (BBB) since 2009, with an esteemed A+ rating and an impressive 4.8 out of 5-star average. These achievements reflect our unshaking commitment to excellence, further validated by the experiences of our clients.
Carla Dooley of Promos Ink remarked, “Banks and credit unions have a lot of red tape. It takes 30-45 days to get anything finalized. Beacon didn’t have those issues. They were much easier to deal with and more personable. I would highly recommend them to anyone who was looking at financing options.”
This endorsement highlights our efficient and client-centric approach, ensuring seamless access to equipment financing without unnecessary hurdles.
Speed and Convenience
Potential for Bigger Transactions
When clients successfully finance their equipment and begin building their business credit, the benefits for vendors grow exponentially. As clients establish a strong credit profile, they gain access to larger credit balances and more favorable financing terms in the future. This financial growth often leads clients to return to the same equipment sellers for repeat purchases, upgrades, or expansion needs.
For vendors, this means a steady stream of returning customers who are not only better prepared to make larger purchases but also more likely to invest in premium equipment or additional services. By aligning with Beacon Funding, vendors position themselves as trusted partners in their clients’ success stories, fostering loyalty and creating a sustainable pipeline of future opportunities.
Beacon Funding’s partnership model ensures vendors stay at the forefront of their clients’ growth, providing the tools, financing, and support needed to help businesses thrive while driving the vendor’s sales and long-term success.
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Retention and Relationship Building
Beacon Funding ensures ongoing support through dedicated retention strategies:
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Final Thoughts
Beacon Funding’s specialized financing solutions help businesses build credit, conserve cash, and grow confidently. By offering fast and easy equipment financing, vendors lower the barrier for businesses to afford equipment. When your clients finance with Beacon Funding, you’re informed of each application and its approval status. It’s our goal to help you increase sales and build long-term partnerships with your clients.
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