If you own a construction business, you know how crucial high-quality equipment is to your success.
Sometimes, obtaining the equipment you need can be a challenge, especially when it comes to financing.
Read on to learn eight reasons why getting a quick equipment loan will help you watch your business grow and thrive without the long waiting period.
1. Flexible Terms
If you need a quick equipment loan, you may have access to flexible repayment terms that will fit within your budget. While these types of loans may have a higher interest rate, they also allow you to pay them off faster if you need to.
Talk to a lender before you choose an equipment loan and see what types of rates and terms they provide. Since most construction equipment is vulnerable to wear and tear, the rates could be a bit higher, but you can also get the financing you need quickly so you’re not wasting valuable production time.
2. You Can Start Work Now with a Quick Equipment Loan
If you’re planning a major project, financing delays can really put a damper on your success. A quick equipment loan means that you’ll get financing fast so you can go out and purchase the items you need.
Customer delays can hurt your reputation and can also cause your business to lose money. If you can get the tools and equipment you need quickly, you won’t need to put customers off or delay your timeline until the financing goes through.
3. Flexibility in Applying
Even if your credit is less than stellar, your odds are pretty good when it comes to being approved for a business equipment loan. Since the rates tend to be higher, most lenders see these types of loans as lower risk.
Another reason it’s fairly easy to be approved for an equipment loan is that the equipment itself is considered the collateral. That makes it a secured loan, which is also a lower risk than a typical unsecured loan. Don’t be afraid to apply for a quick equipment loan, even if your credit score is a concern.
4. Expect Consistent Monthly Payments
One downfall to many loans is that they have variable interest rates. That means your monthly payments will vary each time a payment is due, causing stress and worry every time the new billing cycle approaches.
With an equipment loan, you should receive a fixed interest rate. This means your payment will not change from month to month, giving you peace of mind. Of course, if you want to pay more in order to pay off your loan faster, you can always do so.
5. A Simple Application Process
Some loan application processes can be daunting, and you’re often required to dig up all sorts of financial backup and other information. With a quick equipment loan, you should only need a few basic pieces of information in order to be approved.
Before you apply for a business or construction equipment loan, gather some basic documents together. This should include your most recent business tax returns, bank statements, and a written quote or estimate for the equipment you want to finance. You will also be asked to provide a copy of your driver’s license and a voided business check.
6. You Won’t Need a Big Downpayment
Many loans out there require you to put a sizeable downpayment down or put up collateral in order to be approved. Thankfully, a quick equipment loan can finance anywhere from 80 to a full 100 percent of the cost of your equipment.
Most lenders won’t require a downpayment for equipment financing since the equipment itself is used as the collateral. Another bonus is that you may even be allowed to claim your loan payments as a tax-deductible expense. The price of your equipment may be considered an operating cost, but talk to a tax advisor just to be sure.
7. Free Up Your Cash Flow
With a quick equipment loan, you can use the profits from your business to focus on growing and expanding. A loan allows you to free up any extra cash flow you have to help you put it toward other expenses and projects.
When you preserve your working capital, you’ll have funding for other things like hiring new workers and marketing your business. This makes an easy equipment finance process even more appealing, especially for small businesses.
8. Stay Ahead of the Game with New Equipment
As technology and new developments change, it’s important to stay ahead of the curve so you can remain competitive. A quick equipment loan can ensure you’re getting the newest products as soon as possible.
When you upgrade your equipment, you can reduce completion times and ensure that everything is done the way you want it to be. New equipment helps you compete with other companies and prevents costly expenses like maintenance and repairs that are common when you use older equipment.
Get the Funding You Need
Whether you’re new to construction or you’ve been in business for years, a quick equipment loan can make doing your job a whole lot easier. With flexible terms and an easy application process, you should have no problems getting approved.
Shop for various equipment financing so you know you’re getting the best rates and terms available. With fast approval times, you can compete and stay focused on completing the task at hand.
To get the funding you need to achieve your business goals, Strategic Capital’s experienced team will help guide you through the entire process.
Checking for pre-approval will not affect your credit score.