equipment financing options

5 Equipment Financing Options When The Bank Says No

Many small business owners have faced the frustration of not receiving enough funding support from banks or getting their loan applications denied. In such cases, companies struggle to find alternative solutions for financing their equipment. 

If you’re one of those who have faced similar hurdles, we’ve got some good news — many financing options are available to help you get the equipment you need. This article will walk you through five business equipment financing options that you can explore when the bank says no.

Why Do Banks Say No?

Banks often reject loan applications due to issues that increase the perceived risk for the lender. This could include a poor credit score, lack of collateral, or an unproven business model. If a business owner has a history of late payments, it may signal to the bank that they might have difficulty repaying the loan. If the business is new or doesn’t have a solid track record of revenue, banks may be hesitant as it indicates uncertainty about the venture’s future income.

Another reason banks may say no is if the business is in an industry considered high-risk. Factors contributing to the riskiness of an industry can include market volatility, regulatory changes, or high rates of business failure.

Sometimes, even a lack of understanding of a business’s unique model or industry can lead a bank to deny a loan. In such a case, financing options beyond traditional loans might be the best route to secure the necessary equipment.

5 Financing Alternatives for Businesses Rejected By Banks

Let’s dive into equipment financing options that can keep your business operations running smoothly, even when traditional banks turn you away.


Crowdfunding offers small businesses the ability to raise funds by asking a large number of people for small amounts of money. As a result, equipment financing can become more accessible, especially in situations where banks see too much risk.

Crowdfunding can be especially helpful for borrowers in creative industries, which could attract potential investors. Popular crowdfunding platforms are Kickstarter, Indiegogo, and GoFundMe.

Alternative Financing Companies

Alternative financing companies typically specialize in funding small-to-medium-sized businesses and providing flexible financing options when banks decline lending. These companies tend to have a quicker loan disbursement process that helps borrowers finance their equipment more efficiently. Examples of alternative lenders are Kabbage and OnDeck.

Equipment Leasing

Equipment leasing essentially means that a business can rent equipment instead of purchasing it outright. In this way, they can access the technology or machinery that they need without having to make huge investments. 

Equipment leases can range from a few months to several years, and they are an excellent way to finance equipment with no capital involved. The best part is that at the end of the lease period, businesses have the option to buy the equipment if they choose to do so.

Commercial Finance Brokers

Commercial finance brokers work with a wide range of lenders and loan products and can help identify the best financing options for your business. They can assist small businesses in securing equipment loans at competitive interest rates, and they also provide guidance throughout the entire process. Charter Capital is a good example of a commercial finance broker that offers a wide range of business equipment financing options.

Friends and Family Financing

One of the most overlooked financing options is friends and family financing. While not as formal as a bank loan, this allows you to tap into your personal network’s capital for support. As you’re borrowing from people who already believe in you, friends and family financing is one of the most accessible forms of financing. With that being said, be sure to formalize your agreement, either with a legally binding contract or a simple written agreement, so that everyone’s expectations are clear.

Overall, there are numerous equipment financing options available for small businesses when they find themselves in a situation where the bank says no. It’s not the end of the world — with some research, you can find a financing option that works ideally and obtain the equipment and resources needed to get your operations up and running.

Bank Said “No?” Charter Charter Capital Can Help

Securing financing for your business’s equipment needs doesn’t have to be an arduous process, even when traditional banks turn you down. With the strategies mentioned, you can bypass the challenges associated with traditional bank loans and obtain the funding you need to grow and thrive.

Remember: the goal is to keep your business operational and profitable, so don’t let a “no” from the bank stop you. Evaluate your options, and choose the one that best suits your business needs.

Charter Capital is here to support your growth. We provide flexible financial solutions tailored to your specific business requirements and can help you secure the funding you need with ease.

As a trusted financial broker, we have established solid partnerships with some of the most reliable lending partners in the country. We’d like to be part of your growth and success by connecting you with the right business allies. Contact the Charter Capital team now to learn more about our equipment financing options and services.