Are you planning to buy new business equipment? Want to learn about the equipment loan application criteria? Equipment loans can drastically lower your overhead costs and are quick and easy to apply for. If you are applying a loan or financing for the first time, you might feel unfamiliar with the process and it seem tiresome.
To ensure quick and easy equipment financing in Abbotsford, here are some easy steps you need to follow:
- Choose the right equipment
Find out what possibilities there are for equipment, both new and old. Take your time and browse the market to select the equipment that best fits your company’s needs and business strategy. Think about how much the equipment, gasoline, maintenance, upgrades, and other costs will cost. Obtain a Bill of Sale to support the loan approval if you have a good understanding of the equipment or have decided a vendor.
- Select between leasing & financing
Purchasing is an option if you will need the equipment for many years to come or if you have the money for a sizable down payment. If your equipment becomes outdated every few years or if your business is just getting started, leasing is a better option. If your company requires frequent technological upgrades, think about leasing. Also, it might be a safer option if you’re short of funds.
- Do documentation & maintain records
A lender has to know everything about your business, including your clients’ invoices and the organization you work for, before they will evaluate your loan. The essentials would include your identification documents, company records, the equipment’s bill of sale or ownership, and bank statements. They might also request your financials if the finance amount is more than $100,000. When you begin your lender search, it is a good to have paperwork handy.
- Review your credit score
Take some time to review your credit score while gathering your documentation. Anticipate a higher interest rate if it is low. Credit scores are important because they serve as the lender’s measure for risk and assess the level of risk you pose as a borrower. A low credit score can make the loan application procedure very challenging. Try to improve your credit score over time and submit your application before it becomes too low.
- Understand the loan terms
It won’t take long after you submit your application to hear back from an agent. Prior to signing the paperwork, make sure you have a discussion about the terms and conditions associated with the approval. If the conditions of the agreement do not satisfy your needs, you are under no pressure to sign the paperwork. It is usually a good idea to inquire as to why stringent terms are assigned to your loan application or why you are not being granted an approval.
At Sandhu & Sran Leasing & Financing, we are your local leasing and financing company assisting potential equipment buyers in getting approved for an equipment loan. For more details, give us a call today.
