Commercial Equipment Financing
Providing the best advice and solutions for small and medium-sized businesses looking for commercial equipment financing.
What is Equipment Financing?
Equipment financing is a type of loan that enables businesses to acquire the necessary equipment and machinery to operate efficiently. Instead of paying the full cost upfront, businesses can spread the expense over time, making it more manageable for their budget. This tailored financial solution meets diverse business needs, providing access to essential equipment and machinery without straining cash flow.
Equipment financing is crucial for businesses aiming to:
- Acquire new equipment and machinery to enhance efficiency and productivity.
- Upgrade existing equipment to stay competitive in the market.
- Expand operations and increase revenue.
- Improve cash flow by distributing the cost of equipment over time.
Many of our customers have leveraged equipment financing to:
- Purchase new vehicles for their transportation business.
- Upgrade manufacturing equipment to boost productivity.
- Acquire advanced medical equipment for their healthcare practice.
- Expand their restaurant business by investing in new kitchen equipment.
Understanding the basics and importance of equipment financing for businesses.
Equipment financing is a strategic tool that allows businesses to maintain operational efficiency and competitiveness. By spreading the cost of essential equipment over time, businesses can manage their finances more effectively and invest in growth opportunities without depleting their cash reserves.
Some of our customers...
- Are interested in the lowest rate.
- Are interested in a specific tax treatment.
- Want to avoid breaching existing lending covenants.
- Are interested in the longest term.
- Are interested in getting reimbursed for equipment they have already paid for.
- Want seasonal or other cyclical structures.
- Want to finance software.
- Want to us to give the seller a deposit before the equipment is shipped.
All of our customers want a fair deal at a fair price and no surprises.
Commercial Equipment Financing Loan Solutions
For over forty years, Charter Capital has been one of the most trusted sources when it comes to commercial equipment financing. Over the past four decades, we’ve worked with thousands of clients to select and obtain the best equipment financing solutions for their businesses.
Tailored solutions to meet diverse business needs.
At Charter Capital, we understand that every business has unique requirements. That’s why we offer customized equipment financing solutions that cater to a wide range of industries and needs. Whether you’re looking to upgrade your current equipment or invest in new machinery, our financing options are designed to support your business goals.
Here Are a Few Examples of What We’ve Helped Finance In The Past:
- Manufacturing equipment
- CNC equipment
- Industrial equipment
- Construction equipment
- Transportation equipment
- Laboratory equipment
- Medical equipment
- Production equipment
We want to do everything we can to help you find the best advice and solutions for your commercial financing needs. Our number one priority is our relationship with our clients. Creating and maintaining that relationship is the most important thing we do at Charter Capital. Contact us today and we’d be happy to share all the available options for helping you find commercial financing for your business’s needs.
How Charter Capital Gives You a Financing Advantage
We understand that the world of commercial equipment financing can be confusing. With decades of experience, we’re here to simplify the process and find you a tailored solution. Charter Capital collaborates with a wide range of equipment financing lenders to offer competitive rates and terms.
Here are just a few ways that Charter Capital unlocks financing opportunities for your business:
1. Access to our wide network of lenders
You shouldn’t feel trapped or locked into one financing option. If you want to explore multiple sources of commercial equipment lending, you’re in luck. Our extensive network of commercial lenders is diverse and widespread. Charter Capital has direct relationships with commercial banks and commercial financing companies across the country.
Charter Capital helps businesses secure equipment financing loans with favorable terms and conditions.
Plus, we’re part of the only US commercial finance cooperative, One World Business Finance. This partnership allows us to maintain relationships with over 4,000 independent community banks and multiple commercial finance companies. With so many connections, Charter can unearth the right financing option for your business.
2. Lease and loan options
Whether you want to finance or lease commercial equipment, Charter offers suitable options for your business. We place commercial leases and equipment financing loans for you that are intelligently structured and competitively priced. Find leases and loans ranging from $25,000 to $1,000,000 with the help of our financing professionals.
If you’re having trouble deciding whether to obtain a lease or a loan, talk to the Charter Capital team. We’ll examine your financial situation and provide you with our recommendations. These recommendations are based on the analysis of your unique situation and our decades of experience.
3. In-depth knowledge of the industry
Working with a knowledgeable financing professional can make all the difference in your search for commercial equipment financing. Because equipment loans and leases are one of our primary products, we are well-versed in the commercial equipment financing industry. Charter Capital’s expertise in equipment loan options helps businesses make informed financial decisions.
This knowledge allows us to uncover financing options for you and to advise you throughout the process. If you’re unsure about financial terminology, want to know about typical rates and how your terms compare, or need advice on deciding between financing options, we’re here to help. Charter Capital works for you, not the finance companies or equipment vendors. Our customers notice and appreciate this approach. We believe you will too.
How to Get Equipment Financing
Securing equipment financing is a straightforward process that can be broken down into the following steps:
- Determine your equipment needs: Identify the specific equipment you need and its cost. This will help you understand the amount of financing required.
- Check your credit score: Both your personal credit score and business credit history are crucial in determining your eligibility for equipment financing. A higher credit score can improve your chances of approval and secure better terms.
- Choose a lender: Decide whether to go with a traditional bank or an online lender. Each option has its pros and cons, so choose based on your business needs and credit profile.
- Gather required documents: Prepare financial statements, tax returns, and other necessary documents to support your loan application. This documentation helps lenders assess your business’s financial health.
- Apply for the loan: Submit your loan application to the chosen lender. Ensure all information is accurate and complete to avoid delays.
- Review and sign the agreement: Once your application is approved, carefully review the equipment financing agreement. Pay attention to the terms and conditions before signing.
- Receive the funds: After signing the agreement, the lender will disburse the funds, allowing you to purchase the equipment.
Commercial Equipment Financing vs. Equipment Leasing
When businesses need to acquire equipment, they often weigh the options between commercial equipment financing and equipment leasing. Commercial equipment financing involves taking out a loan to purchase the equipment outright, giving the business full ownership once the loan is paid off. This option is ideal for companies looking to invest in long-term assets, as it allows them to build equity and eventually use the equipment without ongoing payments. Understanding the monthly payments associated with each option is crucial for businesses to manage their cash flow effectively.
On the other hand, equipment leasing allows businesses to use equipment for a set period without owning it. Leasing typically requires lower upfront costs and provides flexibility to upgrade or replace equipment at the end of the lease term. This option is especially beneficial for businesses in rapidly evolving industries where technology and equipment need frequent updating. However, leasing may cost more in the long run since the business never fully owns the equipment.
Finding Commercial Equipment Financing with a Bad Personal Credit Score
You need equipment to grow your business and you don’t have time to build your credit. You’re not alone. Many small businesses face credit struggles that disqualify them for loans from many traditional banks.
Fortunately, there are commercial equipment financing options for those with low credit scores. Keep these tips in mind when searching for commercial equipment financing with bad credit:
- Be wary of lender guarantees. While obtaining equipment financing with bad credit is possible, it requires persistence and caution. If a lender says that they can guarantee a loan, no matter your credit score, avoid doing business with them. Predatory commercial equipment lending businesses will try to take advantage of business owners. Be sure to research any lender and ask these 8 equipment financing questions to understand their policies more. A personal guarantee may be required for businesses with lower credit scores.
- Compile a solid business plan. A lender will examine your business’s financial viability using other metrics in addition to your credit score. Compose a detailed financial report, including a revenue forecast to showcase growth potential. Be able to demonstrate how the loan will move the needle for your business and its ROI. If you or your business partner have experience in the industry, share this with the lender. This can help increase your chances of loan approval.
- Get creative with financing options. Who says you have to go the traditional financing route? If bad credit is holding you back, carve out an alternative path for your business. Examine your customer model to determine whether you can incentivize upfront or early payment to increase cash flow. Browse loan options from modern online lending services that have different approval criteria than banks. Check out these 13 creative financing tips for more ideas.
Meet Your Business Goals With a Boost From Charter Capital
From expanding your service offerings to meeting customer expectations to remaining competitive, there are so many ways that commercial equipment can advance your business. When you need commercial equipment financing, don’t settle for any old option. Instead, talk to the experts at Charter Capital.
Connect with us today to find out how we can help you take your business to the next level.