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Equipment Financing: How it Works and Who is it For

  • November 16, 2020
  • Written by : Carl Eschenburg

Equipment financing does not just cover heavy machinery and big systems. Purchasing new equipment varies between businesses. To a software company, new equipment might be the newest computer, whereas to a shipping company, new equipment might be semi-trucks.

Lucky for businesses, equipment financing covers it all.

As owners, we know how much of a dread purchasing new equipment can be. It starts with “what kind of equipment, brand, etc. is best?”; it ends with “what is our budget?” Unfortunately, sometimes businesses do not have enough working capital or emergency funds to allocate to updates and essentials or do not feel financially stable enough, whether due to inconsistent payments, operating a seasonal business, or others, to make the jump for this big purchase.

It’s normal to feel the pressure of financing. We’re here to make you less hesitant and more comfortable about the entire process. Not only do help guide you, we’ll help you secure the financing you deserve.

What is it?

Equipment financing is what allows businesses to continue operating and growing, despite expensive needs in their company. While it’s excellent to financially plan ahead, in hopes of avoiding surprise costs and making big expenses more manageable.

Why would you want this loan?

Think about it this way. If you or I walk into Lowes or Home Depot with a brand new refrigerator, you may be hesitant in purchasing the best and brightest because of pricing. The solution? The store provides financing options to make the payments easier and more doable. 

In case of Businesses

This happens with businesses as well. In both scenarios, the decision is to simply break it down; break costs down into bite-sized pieces, while reaping the benefits of your new equipment immediately. 

If you’re not the “I need to break it down” kind of business owner, then you might be one in fear of qualifying due to your current financial state. Equipment financing is also a great option for small business owners with not-so-great credit; this is because the equipment purchased is used as collateral to secure the financed amount.

How does it work? 

Almost all industries are considered by us and almost all types of equipment are accepted for financing. It is because our goal is to help as many small businesses as possible.

Documents required:

After getting to know your business, we will ask for a few necessary documents and a completed application, and within 24 hours, our team will have generated an equipment financing offer, customized for you.

Our offer will allow you to purchase new equipment and put up 100% of the purchase price or you can use equipment financing to place a lien against your company’s already owned equipment so that you can recoup up to 100% of the purchase price.

What documents are required?

We only require what is necessary… no more long discussions, miles of paperwork, and an hour application. This is all we ask for:

  • REIL Capital 3-minute application
  • 3 months of business bank statements 
  • Information detailing equipment (year, make, VIN, miles, etc.)

How can you qualify?

As we said, this is a great option for small business owners with not-so-great credit.

While we do have a few specific qualifications, for the most part, we are accepting of many businesses in many industries: 

  • 600+ credit score
  • $100,000 in annual revenue
  • 12+ months in business

Regardless of whether or not you think you may qualify, we encourage you to reach out. A team of specialists could be exactly what you need to secure financing for your business and to allow operating day-to-day to become that much easier.

Let us help. We’re here to help you succeed. 

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