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Requirements to Get a Quick Equipment Loan Approval

Posted On: February 8, 2023 author Paul Kendall

Do you want to get a small business loan instant approval? 

If so, you should know that a small business loan instant approval doesn’t depend only on your FICO score. There are many factors to consider. Particularly, your small business loan instant approval may depend on your company and its current state. Everything about your business helps a lender decide if you’re worthy of an equipment loan or not. That’s why there are many chances that you can’t get a fast equipment approval if you don't have comp debt and many parts of your business aren’t organized.

So to help you avoid denied loan applications, here are the common requirements for an equipment loan. This blog post will help you get small business loan instant approval.

Get a Small Business Loan Instant Approval


Getting small business loan instant approval is a big challenge for many businesses. However, this shouldn’t be a problem at all if you do your research before applying for the loan.

You see, you can easily get a fast business loan approval if you know the lender’s requirements.

As noted earlier, equipment loan approvals usually depends on several factors for most lenders. We’ll talk about those factors today. I’ll discuss the most common requirements to get a fast equipment loan approval. But before that, let’s first see the reasons most businesses seek an equipment loan.

The Use of Quick Equipment Loan


By and large, most business owners seek a loan to get equipment for their operations. Business equipment is often expensive, which makes its acquisition tricky.

Using their available working capital to buy it at full price and in one go can put the future of a business’s operations in jeopardy. The business may end up not having extra money for emergency purposes because of that, for example. This is where quick equipment loans enter the picture.

The equipment loans give you additional funds to avoid potential working capital problems.

The small business loan instant approval often hinges on how you're going to use the borrowed money. So before you get a business loan, create a solid mission critical reason explaining how you intend to use the equipment.  Now, this reason is just one of the factors that equipment lenders will consider in their decision. Let’s talk about the other qualifications for an equipment loan and small business loan instant approval.


Requirements to Get Quick Equipment Loan Approval - small business

Qualifications for a Quick Equipment Loan

The requirements for a quick equipment loan are similar to those for other business loans. Generally, you need to have a good credit score of 625 or better and stable revenue. There are some equipment lenders that don't care about your credit score but you won't get the equipment loan done fast. 

You can get a fast equipment loan through an equipment finance company. Unlike common loans from banks, your average equipment loan from a lender that specializes in financing equipment has fewer credit requirements.

Also, it demands less paperwork for the application.

To give you an idea about it, here are the requirements for a quick equipment loan (or small business loan for equipment):

  • A decent credit score - To get small business loan instant approval, you usually need to have a good credit score. The required credit score depends on the lender.
  • Time in business - If you’re planning to get a small business loan, the age of your business may also affect lenders’ requirements for small business loan instant approval.
  • Comp Installment Debt History - You should have installment debt history equal to the amount you're looking to borrow on your personal credit history. If you don't the equipment lender may ask for bank statements to see if you have the cash flow. They can also  check a paynet report to see if you have borrowed a business loan amount close to the amount you're looking to borrow. 


For example, some equipment lenders approve applications fast from companies with over two years in business provided they have a FICO above a 625.

For startups, however, they might require the FICO to be higher, say above 650. As you can see, the rule is for lenders to have stricter FICO requirements for younger businesses, since they represent more of a risk.

Businesses Eligible for Small Business Loans for Equipment


Lenders also generally have rules determining whether or not a business is eligible for their loans. These have to be considered too when seeking small business loan approval. For example, most lenders state that your company must be actively managed. Lenders want you to operate actively to ensure that you can repay the loan.

Also, if you’re applying to a U.S. lender, your business should be located in the United States and operated by U.S. citizens. The business owner should have 51% or more ownership too, for many equipment lenders. However, some equipment lenders will want someone on the loan if they have over 20% ownership. 

In addition to that, make sure that your business is legal or operating legally. Most lenders won’t give you business loans if you’re violating laws, for obvious reasons. If you're a doctor your medical license must be valid. Some equipment lenders will run a background check and if you have any serious criminal issues you may not qualify. 

Even if you meet the requirements above, though, don’t assume that you can get small business loan instant approval. Keep in mind that each industry has different loan requirements. The requirements are similar to what we talked about earlier in this blog post… but with slight modifications. For instance, businesses in the nursing home industry should have a licensed nursing home or assisted living facility. That’s just one example -- as I said, it will vary from industry to industry.

Qualifying for a Corp Only Instant Approval


It's possible to get a corp only approval for your business. In the equipment leasing world Corp only approvals means the business owners don't have to personally guarantee the equipment loan. So the business owners aren't personally on the hook for the business loan. Most equipment lenders that will do corp only deals for businesses require you to have at least five years in business, have at least 10 employees and you must have done a business loan close to the amount you're looking to borrow. You can generally get the same five year terms as if you'd personally guarantee the loan. 


Requirements to Get Quick Equipment Loan Approval - small business 2

Plans for Using the Equipment Loan


Even if you meet all the other requirements for an equipment loan, it’s best to dedicate time to preparing your business plan. 

That’s because you need to tell the lender your plans when trying to get a small business loan instant approval. 

The way you will use the loan -- and the way you explain your intentions for it -- usually has a big effect on the outcome of your application. Take note that you can usually get an instant approval if you want to use the loan to buy new business equipment. This can often assure the lender that you can repay them without a problem, as it suggests higher productivity and profit for your business in the future.

Where to Get an Equipment Loan


There are many lenders that offer equipment loans. One obvious option is your local bank. However, banks have very strict requirements when it comes to loan applications.

Apart from that, they usually will request twenty percent down and there’s no assurance that you can get equipment loan approval from a bank. So don’t even expect to have small business loan instant approval from them. Many business owners prefer to get an equipment loan from other financial institutions, like equipment financing companies.

Equipment financing companies have lower application requirements than banks. They also accept loan applications from business owners with low credit scores. But despite that, you still need to look for equipment financing companies that work with businesses like yours. If your needs are urgent, look too for those that do fast equipment loan approvals.

Some equipment finance companies can even offer approval of business loans of $350,000 or less in mere hours. With such companies, even small business loans that are within $5 million can be approved within 4-6 business days.

Seek out equipment finance companies that make the application process easy. Equipment finance companies like Trust Capital can quickly assist with and approve applications online. By clicking here, you can be redirected to a finance calculator that connects to Experian to review your credit qualifications, for instance. Through this, you can be pre-qualified online with just a few clicks.

Using the tool linked above saves you time if you want instant equipment financing. With pre-qualification, the process will go smoother because you’ve already been deemed fit for an instant equipment financing approval. 

Final Thoughts on Small Business Loans


In this blog post, I talked about a small business loan instant approval. 

At some point in your business, you’re going to need a business loan. The loan will save you from having financial problems, especially if you’re planning to acquire new equipment. Most business owners can benefit from using equipment loans. It increases their buying power to get the best equipment for their operations without depleting working capital in the process.

Unfortunately, though equipment loans can be a big help, applying for them can be a real challenge if you don’t know how to go about it. A lot of it boils down to doing research on your lender. You can get a small business loan instant approval easy as long as you meet the requirements of the lender.

Usually, the requirements are the ones that we discussed in this blog post. Make sure they’re in order before you put in your loan application. And if you still need assistance getting small business loan instant approval for equipment financing, visit Trust Capital. When applying, all you have to do is fill up a simple application form.

You may also consider checking out this small business loan instant approval tool. This can give you an idea about the total cost of your planned business loan.

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