[CASE STUDY] How to Get Your Start-Up Approved for Equipment Financing

By Calvin Ip| Jun 10, 2022| 2559 Views

This video was made by Senior Financing Consultant, Calvin Ip. As a dedicated financing expert, Calvin works with start-ups and established businesses alike to help each customer get the right financing option that meets their needs.

Getting equipment financing for your start-up business doesn’t have to be difficult with the right lender.

The fact is there are financing experts ready to listen to your goals and give you a chance to get equipment financing that helps you achieve your dreams.

In this interview with Senior Financing Consultant, Calvin Ip…

  1. How I Helped My Customer Launch His Towing Company with Start-Up Equipment Financing
  2. Most Common Struggle of Growing A Start-Up
  3. What Our Financing Experts Look at When Evaluating a Start-Up
  4. How To Get Approved for Best Equipment Financing for Your Start-up
  5. Take The First Step with Beacon Funding

Below is an interview from Senior Financing Consultant, Calvin Ip on how he helped one of his towing customers find the right option with start-up financing. Read the full interview below to review a case study on how Calvin helped this customer get start-up financing, the most common struggles of growing a start-up, and how you can get approved for the best equipment financing for your start-up.

How I Helped My Customer Launch His Towing Company with Start-Up Equipment Financing

One of my customers is a tow truck driver who applied for equipment financing to Beacon Funding. After talking with him and getting to know his business, I was excited to help him out and get approved to finance a used truck for his start-up.

The results: I was able to help my customer launch his towing start-up.

How was I able to get him approved for tow truck financing? My customer got approved based on three main reasons.

Reason #1: His Background

He called me and said he was looking to branch out and start a towing business after getting an understanding of the industry.

Reason #2: His Industry Experience

At Beacon Funding, we have a wide credit window that allows our team to look at a variety of criteria. 7/10 of businesses we work with get approved for financing their equipment within 24 hours.

We were able to help his start-up get approved not just because of his credit score, but because of his 3 years of towing experience (which we like to see).

Reason #3: He Picked The Right Equipment Asset

Another thing that helped my customer get approved was he was looking for the right equipment asset. Since Beacon Funding is a niche finance company, we don’t always finance every used equipment type.

The equipment types we usually finance are:

  • Tow Trucks
  • Boom Trucks
  • Cranes
  • Septic Pumper Trucks
  • Screen Printing Equipment
  • Embroidery Equipment

Since our financing experts know about tow trucks, it made sense when my customer asked about getting one for his start-up. It was an ideal situation for everyone.

Most Common Struggle for Growing a Start-Up

The most common struggle I encounter when working with a start-up is their lack of funding. Many start-ups don’t have sufficient cash to buy equipment needed to produce revenue. In fact, many business owners are worried about whether they will even get approved for financing.

The good news is Beacon Funding specializes in start-up financing. We can get them the funding they need through our flexible financing programs.

Plus, since our financing experts work with a wider credit window compared to other lenders, we’re able to approve 7 out of 10 businesses that apply with us.

What Our Financing Experts Look at When Evaluating a Start-up

Let’s take a look at the three main areas that our financing consultants look at when they review a start-up candidate.

  • Their Background
  • Their Industry Experience
  • The Asset They Are Picking

Your Background: For Every Business, Equipment Financing Is Different.

Beacon Funding’s financing representatives try to understand a start-up’s background. We try to understand why they wanted to start their business so we can understand their needs and the equipment they seek.

What kind of financing do you need? Our financing consultants can tailor a plan that suits your business needs.

  • Lowest Monthly Payment: If your business is like most, having a healthy cash flow is a must!

    If keeping a steady cash flow is your priority, then consider the Buy Now, Pay Later program. This plan allows your equipment to begin producing revenue before regularly scheduled payments are required. 
  • Lowest Cost: For those with ample cash flow, lowering the overall cost of financing may be the primary objective.

    Shortening the financing term and reducing the amount financed with a down payment are two simple but powerful techniques for reducing your overall financing costs.
  • Tax Savings: Consult with your accountant and they may tell you that a capital lease is in your business’s best interest due to a Section 179 tax deduction. It may allow you to write off thousands of dollars in equipment financing.

    Alternatively, your accountant may advise that your business would benefit from an operating lease in which your business can deduct 100% of its monthly payment throughout the term.

Documentation We Need

We made our approval process more flexible for those seeking funding. We are different from traditional banks because we require less documentation for start-ups.

We only need the client’s banks statements from the last three months.

Then, we communicate with our underwriters and move on to the approval process from there.

How To Get Approved for Best Equipment Financing for Your Start-up

To improve your chances of getting approved, we advise any start-up to review 3 things you should disclose in your application.

What if your credit score is less-than-perfect? Even with a less-than-ideal credit score, I recommend seeking a co-signer.

From the collateral side, if you don’t have enough funding for the equipment you want, you can add collateral to your current down payment, which will help with your approval process.

This concludes Calvin Ip’s interview on how he helped one of his customers receive equipment financing for his start-up in the towing industry.

Take The First Step with Beacon Funding

Don’t waste time with a financing partner who won’t approve your business. Unlike traditional lenders that approve 30% of applicants, Beacon Funding approves 70%. That means 7/10 businesses who come to Beacon Funding get approved for the equipment they need to achieve their goals.

And because we specialize in 24-hour approvals, you’ll get quick answers with our hassle-free process.

With thousands of happy customers and over $1 billion worth of equipment financed, you can rely on us to help scale your business and acquire revenue-generating equipment.

To see how we can help you, visit beaconfunding.com/talkwithus today.

Calvin Ip
Calvin Ip

P: 847.307.6230 |  ESchedule a Meeting with Me

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