Is it hard to get financed for equipment?

Qualifying for equipment financing is easier than you might think. Typically, you’ll need to have been in business for at least a year, $50,000 or more in annual revenue, and a credit score of 650 or higher. Because the collateral is often part of your loan, it’s not as difficult to obtain as other types of financing.

What is a practice loan?

A medical practice loan is designed to offer doctors and specialists the funding they need to operate and grow their business.

What is an equipment loan called?

Equipment financing refers to a loan used to purchase business-related equipment, such as a restaurant oven, vehicle or copy machine. When you take out an equipment loan, you’ll need to make periodic payments that include interest and principal over a fixed term.

What equipment can be financed?

Equipment financing is a type of small-business loan designed specifically for the purchase of machinery and equipment essential to running your business. You can use an equipment loan to purchase anything from office furniture and medical equipment to farm machinery or commercial ovens.

What is an SBA backed loan?

An SBA loan is a government small-business loan that can help cover startup costs, expansions, real estate purchases and more. This type of financing is issued by a private lender but backed by the federal government. You apply for an SBA loan through a lending institution like a bank or credit union.

Is equipment a finance agreement?

An EFA, or equipment finance agreement, is a type of business loan where the customer takes ownership of the equipment upfront, and then pays the lender monthly, annually or under a schedule agreed on by both parties. It’s similar to financing a car.

How do you get approved for an equipment loan?

To get equipment financing, you’ll typically need to be in business at least 12 months, have $50,000 or more in annual revenue, and have a credit score of 650 or higher. If your credit score is lower than 650 but you can show proof of solid cash flow and revenues for the past 3-6 months, you can still qualify.