How Does Leasing Equipment with Beacon Funding Help Build Business Credit?

Business credit operates much the same way personal credit does so the better established your business credit, the better terms you'll qualify for! Beacon Funding reports each equipment financing payment to credit agencies, helping your company establish business credit. Each timely equipment financing payment a business makes, increases your business credit score, making it easier to add more equipment in the future.

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Long-Term Benefits of Financing Equipment with Beacon Funding

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Lower Upfront Costs

Leverage your established pay history and business credit to qualify for 100% financing or reduced upfront costs.

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Qualify for Better Terms

Qualified businesses have access to more competitive pricing and additional flexible financing programs.

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Faster Approvals

Companies with established business credit experience faster approvals and reduced documentation requirements.

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Achieve Meaningful Growth

Access larger equipment loan amounts and higher credit limits through established business credit.

What is Business Credit?

Business credit measure a company's creditworthiness by showing how much it can borrow and how well it has repaid past loans. Each timely equipment financing payment a business makes, increases your business credit score, making it easier to add more equipment in the future.

To learn more about business credit, read the article. 

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How Can Business Credit Help Your Company?

Banks and lenders rely on business credit reports to assess the creditworthiness of your company. Strong business credit, or lack of it, can help determine whether your business is approved for a loan. By taking the necessary steps to build business credit the more financial opportunities your business will have.

 

FINANCE EQUIPMENT
Establishing business credit through equipment financing helps separate personal and business expenses by creating a distinct credit profile for your business. This separation protects your personal credit from any negative impacts of business activities, simplifies accounting processes, and builds a strong business credit history. Additionally, it enhances your company's credibility with lenders and suppliers, making it easier to secure favorable financing terms in the future.
EQUIPMENT FINANCING
Equipment leasing allows you to acquire necessary equipment without a large upfront payment. Consistently making payments on your equipment can help build your business credit. A strong credit profile can make it easier to secure additional financing in the future with better terms. As you grow, your business can decreases its cost of funds and qualify for competitive programs like 100% financing.
EQUIPMENT FINANCING
Businesses with positive business credit can finance equipment with better terms and competitive programs.
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Financing equipment helps establish business credit. Making timely payments for 12-18 months establishes a good pay history. This makes it easier to secure larger loans, which means qualifying for bigger and better equipment as your grow.
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When your lender reports your equipment financing payment history to credit bureaus, it helps build your business credit profile. Timely payments can help improve your business credit score. The best part? This score can be leveraged to apply for business credit cards and other loans, making it easier to secure future funding. 
EQUIPMENT FINANCING

SCALE FASTER WITH BUSINESS CREDIT

Add Bigger and Better Equipment Down the Line

By taking the necessary steps to build business credit today, your business could qualify for bigger transactions within 12-18 months! 

  1. Establish a Borrowing History: When your lender reports your payment history to credit bureaus, it helps build your business credit profile. This can improve your credit score and make it easier to secure future financing.
  2. Make Timely Payments: Timely payments build a positive credit history, which demonstrates your reliability as a borrower. This can lead to better financing terms and higher credit limits.
  3. Increase Your Borrowing Capacity: Businesses that finance equipment with Beacon Funding (and make timely payments) can typically qualify for bigger transactions within 12-18 months! 
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THE POWER OF BUSINESS CREDIT

How Can Business Credit Help You Grow? Here’s an Example

Background: A first-time business borrower might only qualify for up to $100,000 since they have not established any business credit. 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. 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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Please provide a valid company name.
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Please provide a valid first name (no special characters).
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Please select type of equipment.
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Please enter a value between $3,000 and $2,000,000
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We have received your submission. One of our expert consultants will contact you as soon as possible. Want to speed up the process? Fill out the full credit application.

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APPLY FOR EQUIPMENT FINANCING & START BUILDING BUSINESS CREDIT

Start-ups & Established Businessess Approved

The equipment you finance today can help you qualify for better terms and higher funding limits later. Beacon Funding makes it easy to finance equipment in 5 steps!

  1. Fill out the form telling us about your business and the quipment you need.
  2. After submitting, we’ll call to discuss your financing plan.
  3. Your application is then submitted to our team for review.
  4. Once you're approved, you'll eSign your documents.
  5. We'll pay the vendor and you can begin making money off your equipment!

 
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Personal credit is tied to an individual’s financial activities, such as credit card usage, loan repayment history, and debt levels. Business credit, on the other hand, is associated with a company or LLC and is used for business-related expenses. 

It is very difficult to grow your business to a meaningful size by purchasing equipment with cash and personal credit alone. Having no borrowing history can be challenging for a business for a few reasons:

  1. Harder to Get Approved: Lenders rely on borrowing history to gauge how trustworthy a business is when it comes to repaying loans. Without this history, it’s hard to get approved.
  2. Higher Costs: If lenders do decide to give you a loan, they might charge higher interest rates or offer less favorable terms because they don’t have a track record to assess your reliability.
  3. Limited Growth: Access to credit can help a business grow by funding new projects, expansions, or covering cash flow gaps. Without borrowing history, it might be harder to get the funds you need to take your business to the next level.
Beacon Funding reports each equipment financing payment to credit agencies, helping your company establish business credit. This makes it easier for start-ups and established business to obtain additional financing in the future.
FINANCE EQUIPMENT
Business credit measure a company's creditworthiness by showing how much it can borrow and how well it has repaid past loans. Each timely equipment financing payment a business makes, increases your business credit score, making it easier to add more equipment in the future.
EQUIPMENT FINANCING
The benefits of business credit are:
  • Improved Financing Options: Access better terms and competitive programs.
  • Scale Your Business: Establish a good pay history for future financing needs.
  • Enhanced Business Reputation: Build a positive credit history with timely payments.
  • Cash Flow Management: Improve cash flow with better loan terms.
  • Separate Personal and Business Expenses: Protect personal assets and simplify accounting.

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Frequently Asked Questions About Business Credit