Credit issues can be a major hindrance for businesses, especially when it comes to acquiring equipment. Businesses can face various problems, from recent losses to restrictions on used equipment and finding the right lender to achieve your goals.
In this article, you will find four common credit issues faced by businesses and solutions to overcome them. Whether you are a young or established business, you will receive advice to help you acquire the equipment you need and achieve your financing goals.
4 Common Credit Issues for Businesses…
- Recent Losses
- Restrictions on Used Equipment
- Young Businesses & Start-ups
- Financing That Doesn’t Meet Your Goals
Problem #1: Recent Losses
Even the best companies have hard years. Often, the fastest-growing companies have a lot of expenses. They may show big losses.
What’s the solution?
Look for lenders who understand financial pains are part of growth. At Beacon Funding, we look at wide-credit criteria, such as:
- Time-in-business
- Personal pay history
- Collateral
By looking at the bigger picture, we can base your approval on a multitude of things, not just a credit score.
Problem #2: Restrictions on Used Equipment
Unfortunately, many businesses can’t take advantage of financing when purchasing used equipment due to restrictions on the equipment or the seller. That’s because some traditional lenders may not finance used equipment or equipment that isn’t sold by a vendor or dealership.
What can you do?
Find a lender that understands your equipment.
A quality lender will have options available to you on both new and used equipment. Just because equipment has been pre-owned doesn’t mean it can’t generate revenue for your business. In addition, a reputable lender should be able to help you when you purchase from a private party.
If you are buying a used piece of equipment from another business that’s closing, Beacon Funding can help you. We finance used equipment and equipment from private-party sellers because we understand how valuable and profitable it is for your business.
Problem #3: Young Businesses & Start-ups
It’s hard to keep a young business open. Only 25% of businesses make it past their second year. Because of this, many lenders won’t extend an approval to any business with less than two years’ time in business. In their eyes, start-ups are too risky.
How can a start-up succeed if nobody will help them get needed equipment?
Work with a financing partner that understands your company’s potential. At Beacon Funding, we believe in helping young and small businesses. We know newer businesses with consistent daily revenue streams have untapped borrowing potential.
As a niche lender, Beacon Funding is focused on working with businesses in the tow truck, screen-printing, embroidery, and landscaping industries. We are focused on helping you succeed.
Problem #4: Financing That Doesn’t Meet Your Goals
Most lenders have a “one-size fits all” approach to financing equipment. Therefore, the approvals they offer might not make sense for your business and what you are trying to achieve.
The reality is every business is unique and has different priorities when it comes to financing.
- A newer business might have a tight monthly budget and needs a monthly payment that fits.
- An established business might not have many moving pieces and needs to keep upfront costs at a minimum.
The answer?
Talk to a financing consultant who understands what your business needs. Tell them your concerns and what you are looking for regarding financing. That way, they can tailor fit your equipment financing to your business.
At Beacon Funding, we are a direct lender. That means we are in control of our approval process and can offer various flexible financing solutions to help you overcome any hurdles to financing. Whether your obstacles are:
- Upfront costs
- Uneven revenue streams
- Business seasonality
- Budget concerns
With Beacon Funding’s flexible financing solutions, we offer a variety of ways to help you achieve your goals and help you get the equipment you need.
Quick Recap
Equipment financing can be a complex process with various obstacles, but businesses can improve their chances of getting approved with the right lender and guidance.
Working with a reputable and experienced lender who understands your industry and goals is key. Don’t hesitate to talk to a financing consultant today, ask questions, and learn about the benefits of flexible financing.
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With the right support and resources, you can set yourself up for success and grow your business with equipment financing. If you enjoyed this article, be sure to like and subscribe to our YouTube channel to receive more educational content on overcoming financial hurdles.