Equipment for businesses comes in all shapes and sizes, but they are often expensive, forcing people to take a business loan in Hudson/Stillwater buy them. A ready stash of working capital can do wonders, especially when you are in a phase looking for avenues to increase productivity/efficiency, need your malfunctioning machinery fixed, or deliver better services/products. It is best to take equipment financing for funding your small business's equipment instead of a regular loan from any bank in Stillwater, MN/Hudson, WI.
It depends a lot on your business needs and financial standing to ascertain whether such type of equipment financing business loan is suitable for you or not in Stillwater/Hudson. On the positive side, it helps your business retain cash flow for additional operating expenses, avoid inflation (if your piece of equipment increases in price), and tax write-offs. But on the negative side, it makes your business vulnerable to down payment requirements and defaulting risks for non-payment.
Qualification for Small Businesses Equipment Fund
Before you approach a bank in Hudson, WI,/Stillwater, MN for any equipment financing, don't forget to cross-check your qualification first. Most banks have three criteria
●
A credit
score of 600 or higher
●
$250,000 in
annual revenue
●
To be
operational for 12 or more months along in business
Options
For Small Business Equipment Financing
● Equipment Financing
It
helps you secure funds up to 100% of a new or used equipment purchase quickly
with low rates and excellent terms. It is the best option for small business
owners with less than perfect credit scores.
● Term Loans
If
you need funds for significant equipment like trucks, trailers, construction
equipment, manufacturing equipment, etc., go for term loans. When you need
funds for any large capital investments, this financing option with a
fixed-rate loan is the best suitable option for you. Its payment terms are
mostly one year or longer, giving ample time to repay it.
● SBA Funding
These
are government-guaranteed loan programs to assist small business owners with
their financing needs. If you are a startup, SBA funding is the best option for
you to fund your small business's equipment.
● A Small Business Line of Credit
It
is a revolving line of credit provided by any bank in Stillwater,
MN,/Hudson, WI, on an as-needed basis to fill in gaps in cash flow, manage
inventory, or expand the business. It is a quick and easy cash option for your
business. However, to maintain a healthy credit score timely, pay down the
balance.
● Business Credit Card
Like personal credit cards are for individuals, business credit cards are for businesses. It allows businesses to keep their business and personal expenses separate for bookkeeping and tax purposes. It is easier to apply for than non-revolving business loans in Hudson/Stillwater.
Conclusion
Equipment financing enables you to purchase new equipment by putting up 100% of the purchase price, whereas a traditional business loan provides just 80% (with more restrictions) in Stillwater/Hudson. You can also use it to place a lien against your currently owned equipment to recoup up to 100% of the purchase price. Therefore, before choosing any funding options for your small business equipment, determine your financial goals first.
●
Do you want
to purchase it all at once?
● Do you want to place a lien on it?
As
soon as you have clarity, go to the bank
website in Stillwater, MN/ Hudson, WI,
complete the application, and attach 3-months of business bank statements and
information detailing equipment (year, make, model, miles, etc.).
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