How to Get the Best Deal on Equipment Financing

If your small business is in need of new equipment, you're probably considering equipment financing as a way to pay for it. Equipment financing is a great option for businesses that don't have the cash on hand to pay for new equipment outright. However, it's important to make sure that you're getting the best deal possible on your equipment financing. Here are a few tips to make sure you're getting the best deal possible.

‍

Know Your Credit Score 

One of the first things you'll need to do when applying for equipment financing is to know your credit score. Your credit score is one of the key factors that lenders look at when considering your loan application. The higher your credit score, the more likely you are to be approved for a loan and the better interest rate you'll be offered. You can order your credit report from all three major credit bureaus—Equifax, Experian, and TransUnion—for free once per year.

‍

Use a Broker

If you're not sure where to start when it comes to shopping for equipment financing, consider working with a broker. A broker is a middleman who can help connect you with the right lender for your needs. They'll take into account factors such as your credit score and the type of equipment you're looking to finance in order to find the best lender for you. Working with a broker can save you a lot of time and effort in your search for the best equipment financing.

‍

Shop Around 

When it comes to obtaining financing for your small business, it pays to shop around. There are a variety of lenders out there who offer equipment financing, and each one has their own terms and conditions. Interest rates on equipment financing can vary widely from lender to lender. That's why it's important to shop around and compare rates before you commit to a loan. You can use an online interest rate calculator to compare rates from different lenders.

It's important to compare offers from multiple lenders in order to ensure that you're getting the best deal possible.

‍

Consider All Your Options 

There are a variety of options available when it comes to equipment financing. In addition to traditional loans, you may also be able to finance your equipment through leasing or rent-to-own agreements. If you're not able to obtain financing for your equipment purchase, another option to consider is leasing. Leasing can be a great option for businesses that don't have the cash on hand to pay for new equipment outright. When you lease equipment, you make monthly payments to the leasing company instead of paying for the equipment

There are also a number of government programs that offer financing for small businesses. Be sure to consider all of your options before you commit to a particular loan.

‍

Negotiate 

Once you've found a lender that you're comfortable with, it's time to start negotiating. Remember, lenders are businesses too, and they want your business just as much as you want theirs. Don't be afraid to negotiate the terms of your loan in order to get the best deal possible. Some things that you may want to negotiate include the interest rate, repayment schedule, and origination fee.

‍

By following these simple tips, you can be sure that you're getting the best possible deal on your equipment financing.

Bottom Line

Equipment financing can be a great way for small businesses to obtain the equipment they need without having to pay for it all upfront. However, it's important to make sure that you're getting the best deal possible on your equipment financing.  Be sure to shop around, compare rates, and negotiate the terms of your loan in order to get the best deal possible.

‍

If you're looking for equipment financing for your small business, National Legacy Capital Group can help. We specialize in equipment finance and have a variety of financing options available, and we're here to help you find the best one for your needs. Contact us today to learn more about our financing options and how we can help you grow your business.