Whether you’re an established business owner or just starting out, balancing your budget while pursuing growth is crucial for success. When it comes to acquiring new equipment, you can choose from traditional bank loans, cash payments, or equipment financing lenders.

Many myths surrounding equipment financing can lead to confusion, making it difficult to separate fact from fiction. We’ve addressed and debunked these common misconceptions to help you secure the necessary funding for your equipment:

1 The paperwork for financing is too complicated.

2 Paying cash for equipment is always the best choice.

3 Financing is too expensive.

4 Bank loans are better.

5 You need perfect credit to get financing.

MYTH #1: The paperwork for financing is too complicated.

Navigating financing paperwork doesn’t have to be challenging if you partner with the right financing provider. Many companies have simplified their procedures, enabling you to focus on growing your business. By providing thorough information from the outset, you can make the process smoother. Advances in technology and automation have also made managing paperwork far less stressful.

MYTH #2: Paying cash for equipment is always the best choice.

Purchasing new equipment can be expensive, and many businesses have faced difficulties or even failure due to a lack of liquidity. Equipment financing offers a way to acquire the funds needed without emptying your bank account. By opting for financing, you can get the essential equipment for your business’s growth while maintaining cash for other critical investments. This method helps you enhance marketing initiatives, cover everyday expenses, and stay ready for unexpected challenges, all while keeping your cash reserves available

MYTH #3: Financing is too expensive.

A common belief is that financing costs too much. However, financing can actually be quite affordable. It enables you to break down a large purchase into smaller, manageable monthly payments, reducing the impact on your budget. This method helps you keep your cash flow steady, as opposed to draining your funds with a full upfront payment for equipment.

MYTH #4: Bank loan are better.

Bank loans are helpful if you have a long-standing relationship with a bank. However, securing financing through a traditional lender can be a slow and complicated process. On top of that, traditional lenders have strict criteria to qualify that can cause them to overlook your business. Instead, focus on finding a lending partner who knows the value of your equipment and believes in small businesses.

MYTH #5: You need perfect credit to get financing.

If equipment financing companies only worked with perfect credit, their deals would be few and far between. Although good credit often translates to better terms, businesses with challenged credit can still receive affordable financing plans. By taking into account other factors of a business, such as collateral values, pay history, and trade references, lenders can quickly determine the best way to get you the equipment your business needs.

Don’t Wait Any Longer!

Secure financing for your next piece of equipment today! There are numerous options available for funding your business’s equipment needs. It’s up to you to choose the solution that best suits your business. Don’t let your business miss out on optimal financing opportunities—Apply Now!