Equipment based loans can be some of the easiest funding to access. Some of the general requirements are:
Must be a for-profit business entity in good standing.
None of the business owners can be felons or on parole.
Business must be physically located in the United States.
Must not delinquent on any existing debts such as taxes, loans, or credit cards.
Owners need fair credit scores preferably above 600.
There can be no history of recent bankruptcies, foreclosures, or tax liens.
Business needs to have at least a low 5 bank rating.
Equipment Leasing and Financing. Most any type of equipment can be leased or financed on fixed rates and terms. Equipment leases can also include service agreements or other add-ons such as software for computers. Leasing allows for smaller monthly payments over a multiyear period. Equipment can be purchased or returned at the end of the lease.
Equipment Sale Leaseback. If your clients own existing equipment outright and if that equipment is fairly new, depending on the type, then that equipment can be sold and leased back. Here your client sells their equipment to the lessor for typically fifty percent of its current market value and gets those funds in cash. Then they execute a fixed rate and term lease agreement for the equipment where the equipment never leaves their site.
Truck, Tractor and Trailer Financing. These are credit lines that can be provided by private companies who may take higher risks than banks or SBA programs are willing to take. These loans range from $10,000 to $500,000 where the terms will normally be at higher rates than from banks depending on your clients qualifications.