(866) 458-4777
Paul Kendall
Startup equipment financing isn’t as exclusive as some might think; it has already been used in many different industries. Entrepreneurs are taking advantage of the new finance opportunities and booming because of it. New ways of funding equipment are being discovered every day. Established new businesses are finding great ways to use equipment leasing to benefit their company.
However, you need to answer the following question – will startup equipment financing benefit my new business?
The following three reasons should help you to come up with an answer.
Faster Investment
Bringing an idea from concept to reality can be difficult with no funds. No funds mean no way to purchase equipment that will help implement your ideas. Every startup needs finance to help grow their new business.
Startups are fast. One day they’re a product of someone’s imagination and in a year or two they may have 50 or so employees. Since new businesses are smaller they can progress quickly. Startups can progress even faster with some financial help.
Startup equipment finance allows you to grow quickly fast instead of gradually over time. Financial freedom allows you to explore countless ventures that could take your startup to new levels. Spend your money on things that appreciate like hiring good people and marketing and lease equipment that depreciates.
Credit Requirements
Startups, just like all other companies, have to meet certain credit requirements when applying for an equipment loan.
These requirements are:
- Business license or active business entity with the secretary of state
- Personal guarantees required from all owners
- Minimum 600 credit score
- No bankruptcies in the last 7 years
- No unresolved tax liens
Continue Company Growth
Growth is extremely important for a new business. Growth within the first five or so years could make or break a startup. When financing your equipment for your startup keep growth in mind.
As a business owner, when you grow faster than you can fund, it often means a sudden need to slow growth or find a solution to keeping that momentum. Keeping this momentum is crucial and it’s possible through startup equipment financing. Your new business will be comfortable financially while also growing at a healthy rate.
Trust Capital Startup Equipment Loan Example
Trust Capital provides a wide variety of equipment finance loans to startups. The application process is simple so that it’s easy for startups to keep their momentum growing. We have the best start up program equipment financing in the industry right now. With just a simple one page application you can get qualified up to $75,000 with rates starting at 9%, on terms up to 60 months with $0 down.
For this special program we require:
- 680+ FICO score
- At least 5 active standing trade lines on your credit report
- 2 years industry experience
- No prior slow pays
- No prior bankruptcies
If your startup has all this, you’ll be eligible for $75,000 worth of an equipment loan depending on the type of equipment. Since Trust Capital is also a broker, we can help startups with loans from several different banks for several different pieces of equipment.
We also have a start up heavy equipment loan program. With just a simple one page application you can get qualified up to $150,000 with rates starting at 12%, on terms up to 60 months with 10% down.
For this special program we require:
- 650+ FICO score
- At least 5 active standing trade lines on your credit report
- 3 years industry experience
- No prior bankruptcies
We do have other programs for start ups as well. Such as a full financial package program that can get you qualified for millions of dollars. We can do a letter of credit program to get you millions of dollars as well.
This money allows you to keep the momentum growing. Financing equipment for your startup isn’t as tricky as some make it out to be.
Equipment Loans won’t Impact your Personal Credit
New business owners are often under the impression that an equipment loan will have a negative impact on their personal credit. This is a misconception. There is no relation between the equipment finance loan and your personal credit. You will not see any debt on your personal credit reports. This loan is completely independent of your personal credit.
When you invest in your business there is already a risk, startup equipment financing can alleviate this. Without the need for it to impact your credit, require hard collateral, nor upfront fees, you are able to acquire equipment for your new business with ease. With startup equipment finance you’ll feel free to invest in your business without any personal burden.
Explore your options
The best thing you can do as a start up business owner is to shop around and collect data on every offer that you can, and then only consider the best option when you’ve had a chance to compare all the options for equipment leasing for start up businesses.
Here are some handy equipment loan calculator tools for start ups to help you along your way.
- What will my financing payments be? Using an equipment financing calculator.
- What is my equipment financing rate? Using an equipment loan calculator.
- How much equipment can I afford to buy? Using an equipment lease calculator.
- What is my equipment leasing rate? Using an equipment leasing calculator.
- What will my equipment lease payments be? Using an equipment lease calculator.
Considering the arguments mentioned above, startup equipment finance for your company is definitely a beneficial move.
It means providing your business with fast continuous growth without the risk of damaging your personal credit. It’s cost effective and makes your company successful, faster.
Trust Capital specializes in providing startups with equipment finance solutions fast, regardless of their current financial status. The Trust Capital team believes in progress and development, which is why they’ve built a company around equipment finance.
Startup equipment loans are constantly evolving and changing. It’s time for your company to grow and join the contemporary business market.
Contact Trust Capital today at 866-458-4777 to learn more about equipment leasing for new businesses and how they can help your business get off the ground in less time.
