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  • Writer's pictureKirksley

When you need business equipment now, the "application-only" method is the solution

When businesses need money for equipment purchases, most owners believe the typical depository bank is the only place that can help them. This is not true in the world of equipment finance because there are many non-bank equipment financing companies with plenty of funds to deploy on equipment loans and leases.

These specialty finance companies may be able to match or beat a typical bank on the financing terms (e.g. the rate) but the most important difference is speed. While the underwriting process at a bank may get bogged down for weeks or even months, these specialist companies do nothing but equipment financing and are experts at reviewing and closing equipment deals quickly. Moreover, the application requirements at equipment financiers are usually "app-only" up to amounts of $150K normally and even as much as $300K.

The light application requirements result in a rapid yes/no financing decision by the lender so that you know right away if you will get the financing requested.

These application-only requirements typically include just the following items:

  1. a signed credit application

  2. the invoice or purchase order for the equipment to be acquired by the business

  3. most recent 3 full month bank statements

  4. possibly a personal guarantee for anyone owning more than 20% of the business and/or a credit report of the same persons

Note these document requirements at the app-only level do not include tax returns nor the formal company financial statements. These documents become required as part of a "full financial package" on deals for amounts greater than the app-only maximum (greather than $150K-300K depending on type of equipment and lender policy).

If you run a business and need equipment in a short amount of time, or simply don't want to deal with the red tape and long waits on a typical bank loan approval process, contact us to see how you can get started with financing your equipment purchases below certain thresholds on an app-only basis. The credit decision will be rapid which will help you make a great decision for your business operation.

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