Equipment financing for start-ups
Successful businesses require having the best of everything. The right employees, a great location, and most importantly the proper equipment to handle your business. Having the right machinery for your company is crucial because it affects the efficiency of how business is run. Doctors should be up to date with the latest advanced technology to help determine their patients diagnosis. Construction workers need heavy duty equipment to keep their projects on track. Investing a bit more in the right equipment will give you a better payout down the line. This may be challenging since machinery can run a business thousands and hundreds of dollars on end. Seeking out equipment financing can be extremely beneficial. In addition to getting the funding to lease or purchase your business equipment, the machinery itself can act as collateral for the loan. New York Tribeca Group works to get you the best funding possible for your business.
Here’s why equipment financing can work for you
As a business owner, you shouldn’t feel limited to what you can do to grow your company. Equipment financing can get you the funding you need to expand. Not only will it improve your business’s productivity but you can choose from an array of equipment options that meet your specific business needs. We offer different kinds of equipment financing as well. The qualifications are simple just like the application process. We’ll break it down step by step.
Is leasing or purchasing a better option?
Having access to numerous equipment funding options may leave you wondering how each one differs from the other. Fortunately, it’s pretty simple. Lenders will provide business owners with the funding they need to get the equipment necessary for their business. The money can be used to lease or purchase equipment for their company. The loan repayment terms will be set up over a period of time that will include interest. Once the loan is officially paid off the equipment is yours to keep if purchased. If you leased your equipment then renewing your contract may be an option. That is something you’ll have to discuss with your contractor. Financing equipment comes with a bonus. When lenders request collateral for the loan, most times the equipment itself can act as the collateral which saves the owner time and money. With financing equipment, your options are usually limitless.
The different types of equipment financing
Your equipment options are endless when it comes to us. New York Tribeca Group can offer your business up to five million dollars in funding. Your equipment financing options are endless when it comes to us. Here’s just a few kinds we offer.
Construction equipment: We cover the cost of loaders, bulldozers, and backhoes. Our goal is to help bring the blueprints of your business to life. With the heavy duty equipment you’ll get, no project will be too small.
Restaurant equipment: Provide your customers with the dining experience in town. Whether it’s a new state of the art stove or bigger fridge to store the produce, having the right equipment for your establishment is beneficial.
Medical equipment: Staying up to date with the latest technology is important in the medical field. Being able to diagnose patients with the proper findings determines their health status. From thermometers to blood pressure monitors, no purchase is too big with the right financing.
Office equipment: Computers, printers, and network servers are all small portions of the office that play a big role in business. Financing your office equipment will keep business booming.
These are just a few of the types of equipment financing we offer, we’re available to help fund equipment for just about any business.
Financing over time
With heavy equipment comes a hefty price. The length of financing your equipment is based on a few factors. Lenders will look at the amount you’ve requested and determine what your interest rate and factor fees will be based on your businesses history. For example:
Bob the business owner is looking to expand his trucking company. He takes out a loan for $20,000 and uses $5,000 as down payment for collateral. His lender charged a 7% interest rate with a 4% origination fee. His term length is 36 months to pay back what he owes in full making Bob pay $618 per month. In the end, he will be paying $22,232 back by the end of his loan term.
Equipment financing can last anywhere from three to 18 months or 24 and beyond. It’s recommended that if you’re purchasing the equipment, you give yourself three or more years to complete your repayment terms. If you’re leasing the equipment, you shouldn’t need more than a few years to pay it off in full.
How to get started with financing equipment
Finding the best equipment financing for a business is a process that shouldn’t be rushed. Although many lenders and banks are ready to work with companies, they take their time to process qualified candidates. Having the proper paperwork and numbers ready on hand can make a difference. Researching lender’s qualifications ahead of time can also help determine who is a better fit for your business. Banks and credit unions tend to require higher numbers. A good credit score of 650 or more, over a year minimum in business, and a strong monthly revenue. Overall, they want to know that they are lending their money into the hands of a reliable business owner. Showing results of a healthy business can do just that.
On the other hand, it’s understandable that not every business is in the best standing to fit the qualifications needed to receive equipment financing. New York Tribeca Group is a top tier lender that works with small business owners to get them the funding they want or need to help bring their business to life. Having a perfect credit score isn’t mandatory for us. We just want to see that your business is in good standing. Our requirements include a 450 credit score minimum, at least six months in business, and a minimum of $5,000 in monthly revenue. If any of these are a concern, then we’ll do our best to work with you but nothing is guaranteed.
Making NYTG your go-to lender
With lenders all across the country, we strive to excel in our field. New York Tribeca Group is built on helping people of all kinds to get their dreams of a successful business up and running. We offer a line of products that have helped thousands of business owners open the doors of their companies. From purchasing heavy equipment to keeping the maintenance up, our financing has proven and created success stories over the past few years. We want to be there for you to help your business grow. Get started today by filling out a simple online application to see where you stand. Although we can’t guarantee results, we’ll do our best to get you as close as possible.
Got some questions?
This kind of financing is where lenders disrupt loans to help provide you access to equipment for your business. This allows you the ability to own your equipment outright.
With this kind of financing, you have the option to use your funds to loan or lease.
After approval for an equipment loan, you’ll make periodic payments over time including interest and fees.
Collateral may be needed as a lien against your debt. After paying off the loan in full, the equipment is officially yours.
The options are endless when it comes to the equipment that you can finance.
We know that being in the business can be costly, and run you up a hefty bill.
- Printers and copy machines
- Furniture (chairs and tables for restaurants)
- Computer monitors
- Industrial equipment
We’re here to supply you with whatever your business needs.
Leasing does come with its advantages over financing. This doesn’t require any kind of down payment to retrieve the equipment upfront.
The drawback of leasing comes with potentially paying more in the long run.
With equipment financing, you can use the money to repair, purchase, or lease the equipment you need, no additional collateral necessary, and increase your sales for business.
Unfortunately, these loans are only restricted to equipment and can run you higher traditional loan rates.
Is an equipment financing loan right for me?
As a business owner, you ultimately make the final decision on whether or not equipment financing is the best decision for you.
It’s all about doing your research and having your numbers and blueprints ready on hand. We can help you narrow down your options and make the right choice for you and your business.
At NYTG, we prefer that your business have an overall healthy status. This includes being in business for some time, having a good monthly revenue coming in, and making payments on time where it’s due.
A healthy business is vital because it gives the overall summary of how your operations have been running. A good credit score is important but it is not the major key to making or breaking your approval rate for a line of credit.