Having a good credit rating opens up a world of financing options for your business. Rather than high interest loans and large down payments you will find your business being offered more affordable financing options with low interest rates. If your business or personal credit score is over 700, you should be able to find the best financing options available with ease.
Keeping up to date and fully functioning equipment for your business is a must. However it does come as a large expense to most businesses. Rather than depleting your business or personal savings to make this purchase you can opt to use an equipment loan. If your business has a good credit rating, or your personal credit rating is 700 or above you should be able to easily obtain an equipment loan with a low interest rate and fixed repayment term.
If your business has a large savings and using it will not affect your business negatively then by all means purchase your equipment outright. For most business owners this money isn’t easily obtainable and taking it out of the business can slow down growth. An equipment loan will allow your business 2 to 5 years to pay off the loan while being able to use the equipment to keep your business moving in the right direction. It is important to look at your businesses needs before deciding on a equipment loan.
Chris Fuller went to the University of South Florida and has worked in the financial sector for over 20 years. He has extensive experience in all aspects of personal and small business lending, from personal loans, equipment finance to cash flow based solutions for small mom and pop businesses, and large corporations.
