When it comes down to getting a loan for equipment for small businesses, there are so many options.
One of the best options is actually the bank that you have your business account attached to.
Some other options include:
#1: Traditional/National lenders
Traditional lenders refer to banks and national lenders include organizations such as Wells Fargo and the Bank of America.
They generally have more rigid underwriting requirements but offer better rates and terms.
For business startups, it might be difficult to get financing for equipment from traditional banks as a business cash flow statement of up to two years is often a major requirement.
But still, there’s no harm in giving them a try!
Traditional/national lenders are the best options when it comes to getting the cheapest interest rates and longer terms on equipment loans.
In some cases with traditional banks, you might need additional collateral apart from your equipment for the loan.
#2: Non-Traditional Lenders
These are private loan organizations that offer more flexible terms than traditional banks to small business owners.
Most non-traditional lenders can be found online!
They are not too strict with their requirements, but they often request higher interest rates and shorter loan terms. Some even request a certain percentage of your business future credit card clearance as interest.
Some popular non-traditional lenders that offer equipment financing for small business owners include: