Posted by Nikki Wardle on Dec 1, 2016 9:00:00 AM

5 steps to financing equipment

Making sure your business has the necessary equipment can be one of the most important, and most difficult, components of your overall success. For many small business owners securing financing remains one of the largest obstacles that you can face. Luckily, here are five steps you can take to ease the burden and obtain the funding for that truck you have your eye on.

1. Have Your Business Paperwork in Order

The first thing you want to do is to make sure all of your business financials and paperwork is in order. Very little will make a lender nervous quite like a business asking for money without getting their paperwork in order first. Here are some things to consider.

  • LLCs and Corporations can show proof of business with a simple search on your secretary of state's website. Make sure to check with your lender, but this is a common form of proof.
  • Existing Sole Proprietors or Partnerships that haven't filed organization paperwork can usually show their Schedule C, or K-1, respectively to show proof of your company's existence.
  • New Sole Proprietors or Partnerships show proof by submitting their EIN number or DBA name.

Make sure to check with your lender to ensure that they don't need any additional paperwork.

2. Improve Your Credit As Much As Possible

The availability of financing is directly tied to your credit score and ratings. Improving your score is always a great step to take when you are seeking to finance. Order your credit report and look for inaccuracies and clean them up. Keep paying your bills on time and avoid any negative reports as you are applying and securing financing.Finance construction equipment

3. Do Your Research On the Equipment

Make sure you do your research on the truck or equipment options you are considering. Banks will do their due diligence, and will only lend to pay for quality vehicles. Ignore any inclinations you may have regarding brands or features, and focus on finding the most reliable and proven vehicle you can.

4. Secure Your Insurance

Securing your insurance before you apply can go a long way to showing organization to a lender and can help you plan your expenses for the new equipment. Your insurance options may vary widely and by shopping around you can hopefully find a program that takes care of your needs while not over-insuring your vehicle and costing you money.

5. Find the Right Finance Company

This can be the most important part of your trip through the financing world. Every finance company is different and has different skills or experience. Do your research and find a finance company that is an expert in your industry and can help give you the edge on your new equipment purchase. Brahma Lending and Leasing focuses on lending to transportation, agriculture, and construction entities. We know the particular needs and challenges of these business sectors and can work with you to help you succeed.

Nikki Wardle

Written by Nikki Wardle

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