Useful Tips for Financing Your Equipment for New Startups

It can be difficult for new businesses to acquire the money they need for equipment via traditional bank loans due to a lack of business credit history. If you’re about to launch a new business and are in need of financing for the equipment you need, you should consider equipment financing because you most likely will qualify for it.

Leasing Makes Sense in Many Ways

Rather than having to wait for months to get a business loan approved, you can obtain the financing you need much sooner from an equipment finance firm so that you can proceed to launch your new startup as planned. This type of financing makes good sense for startups as there is no down payment to make and the repayment terms can be customized to match your financial capabilities. You’ll also be able to use the capital you have on hand for other expenses such as purchasing supplies, hiring employees and marketing your business.

Prepare Your Paperwork

There are some documents you must get in order before you apply for financing. While these documents can vary from one leasing firm to another, most want you to provide them with a written equipment lease proposal, recent financial statements and recent tax returns. When writing your proposal, be as thorough as possible. Make sure you spell out what type of business you’re starting and why you need financing for the equipment your business needs. You also need to indicate what type of specific equipment is needed as well as other details which will help the finance firm understand your needs.

Find Finance Firms That Offer Several Lease Options

Equipment finance firms vary considerably so it’s to your advantage to seek out firms that provide you with some leasing options. An example of such a firm is Varilease. This company provides a variety of leasing solutions including operating leases, capital leases, tax and non-tax leases, sales leasebacks and line of credit leases. The best finance firms know that startups like all businesses are unique and have specific needs. By finding a firm that offers flexible leasing options, you can choose one type of lease or a combination of two so you’ll be able to expand your business while properly managing its capital structure for ensured growth.
Don’t Overdo It

It is not advisable for a startup to submit numerous lease applications. This is because a finance firm, when looking over your application may become suspicious as to why other finance companies are rejecting your application. Instead, select your top choice in a finance firm, send in your application and then wait for a response. If that firm denies you the financing you need, make note of why and if possible, change what the company didn’t like. Then you can go on and submit an application to the second firm on your list and so on.

By following these tips, you should succeed at obtaining the equipment financing you need so you can get your business up and running. There are many advantages associated with leasing equipment including no down payment, flexible repayment schedules and the opportunity to customize your lease terms.

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