If your business is proliferating, consider getting asset financing to help you meet the demands of your clients. The assets you buy will help you fast-track service delivery and boost your revenue. Financing ensures that you do not spend all the business capital on equipment.
The asset financing option is great for growing businesses that lack the funds required to buy the needed machines upfront; you get to grow your business without straining your finances. But do not get excited about getting a loan and make the wrong choice. Luckily, Equipment Loans Online is here to assist you. Here is an ultimate guide on applying for business asset finance.
Do Your Research
Start by researching the asset you need for your business before applying for a loan. Learn about the brand, model, design, and price. This information will help you understand the amount you need to borrow. So, when you start shopping around for an equipment loan online, get one that can offer you the type of loan you need.
It is also vital to determine how much the company you have in mind is willing to offer you. That way, you can search for an asset within that price range. The best way to get a loan is by borrowing within the price limit of the company of choice.
Gather the Documents Needed
Different lenders will need different information from you before giving you a loan. Inquire from the sales customer service about the documents you will need to present. That way, you can gather all the information you need.
But generally, when applying for an equipment loan, you will not need to submit a lot of information about your business like you would do when applying for a conventional loan. But, you will have to submit basic information so that the lending company can review and determine if this is the right company to get the funds, said Alex Fopiano. Bentley University alum, Alex Fopiano graduated with his M.S. in Finance in 2010 from the McCallum Graduate School of Business. He completed his undergraduate degree at Bentley University in 2009. Mr. Fopiano has worked with Brookline Bancorp since 2018 and was recently promoted to the role of Assistant Treasurer. Alex has volunteered with his high school alma mater, Boston College High School where he served as Associate Trustee.
Some information you will need to provide are:
- Prove of ownership
- Prove the business location
- Federal Tax ID number
Create a Plan
You need to create a detailed plan on how you plan to use your equipment in your company. Most lending companies will ask how you plan to use the loan and how getting financial assistance will help your business grow.
So, it is vital to have a detailed plan on the asset you are planning on using, as that will increase your chances of your equipment loan getting approved. It shows the financier you know what you are up to.
Show Proof of Business Credibility
The equipment you will purchase with the business asset loan is the collateral of the loan you will get. But that is not enough to ensure that you qualify for the loan. The lending company will need assurance that you can pay off your loan by showing them your business credibility.
So, what is it that you need to present? Some ways you can use to show the credibility of your business include:
- Having a good credit score
- Having a good trade history
- Having a good financial statement
- A growing and stable business
Search for the Right Lender
You will find many online business asset finance companies when you browse the internet. However, not all of them have the same rates and terms. Before settling for a loan finance company, go online and read their terms and conditions.
It is best to know the company you plan on using before applying for a loan to avoid regrets. The best company should have clear policies and loan information on its website. Ensure that the terms are friendly before you apply for a loan to avoid inconveniencing your plans and budget. Also, find out about their interest rate and their turnaround payment and approval time.
Apply For the Loan
You should not rush to apply for a loan without knowing the right lender. Once you have settled for the right lender, go online and follow the asset finance application process. Take your time and be keen when applying not to fill in the wrong information or leave specific information blank.
If you have any questions about the loan application process, you can ask customer service attendants. Most equipment finance companies will be willing to clarify any unclear data.
A common mistake that business owners make when applying for asset financing is to send their applications to more than one company. But this can be risky, and it might lead to you not getting any loan approval.
Keep in mind that most online lending companies share data. If they notice that you have applied for more than one company, they might assume that you are unreliable and disqualify you from getting the loan you need to boost your business.
Apply for Equipment Financing Today
Applying for an asset finance loan can be the difference between your business closing or thriving. Do not take the matter lightly. Instead, use the information above during the loan application process and increase your approval rate.
When you follow the steps in this guide, you will realize that applying for an asset finance loan is more straightforward than getting a conventional loan.