How does equipment financing work?
You select the type of equipment, the vendor you want to work with, the type of equipment you want to obtain, negotiate the cost of the equipment, as well as other details. In most cases, for equipment cost of $75,000 or less, you’ll present this information with your financing application along with 3 months of bank statements and we do the rest. For equipment financing over $75,000 we will require full financial disclosure. Our Account Manager will address those requirements with you in greater detail.
If you’re approved, we will prepare the financing documents for your signature. From there, after we have your signed documents and required up front payment(s), we will issue a Purchase Order to the vendor. The vendor will then ship the equipment to you or you pick it up, which ever is appropriate. You’ll make regular payments for the duration of your financing – typically up to 5 years. You may even be able to customize certain terms and conditions to your business’s needs. Many times, the entire process can be as quick as 3 days or less.
Some lenders may impose restrictions on the types of business equipment you can finance. Whether it’s a new model or previously used, so long as it makes sense for your business there shouldn’t be an issue.
We provide equipment financing solutions for a wide variety of equipment. This includes machinery, titled vehicles, recycling equipment, commercial ovens, manufacturing equipment, medical and/or health care equipment, and more.
Is it hard to get financed for equipment?
In most cases, it’s not very hard to get business equipment financing. In fact, in many cases it’s actually easier to get approved for business equipment financing than bank loans. If the equipment cost is less than $75,000, normally all you need to do is complete, sign and return to us the credit application along with 3 months of bank statements and a vendor quote or invoice. When we receive that information, we will conduct our underwriting and call you to cover any questions we might have. We will generate a financing proposal. When you accept the proposal and return it to us, we will then take it into our credit committee. After that, the turn around is typically within 24 hours.
GFLS has business equipment financing options for all types of businesses, and you’ll find it’s easier to get approved compared to traditional banks. Plus, the application process is fast and straightforward. In most cases, there’s no need to go back and forth collecting numerous documents.
How long can you finance used equipment?
You’ll typically be able to finance used equipment for 1 to 5 years. If the equipment you are purchasing isn’t too expensive, you may be able to get a shorter term loan.
The repayment term on your business equipment financing is important because it represents how long you’ll be in debt as well as the overall cost of financing. Longer term loans feature lower monthly payments, but can be more expensive over loan’s lifetime. Shorter equipment financing terms have higher monthly payments, but you’ll be in debt for less time and save on overall financing costs.
Still, many businesses will select a repayment term based on the monthly payment amount they can afford. Make sure to consult with one of our Account Managers to help you understand which would work best for your scenario.
Can I get startup equipment financing with blemished or bad credit?
Yes! It is possible to secure startup equipment financing even with blemished or bad credit.
GFRS fills in the gaps where banks and traditional financing options fall short – especially when it comes to financing startups. GFRS is inherently more flexible than banks or other traditional financing sources.