Why more businesses are turning to secured business loans to get financing
https://www.leasefunders.com/equipment-sale-leaseback.htm Why more businesses are turning to secured business loans to get financing
https://www.leasefunders.com/equipment-sale-leaseback.htm
Why more businesses are turning to secured business loans to get financing
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<strong>Why</strong> bad credit <strong>business</strong> owners <strong>are</strong> <strong>turning</strong> <strong>to</strong> <strong>secured</strong> <strong>business</strong> <strong>loans</strong> <strong>to</strong> <strong>get</strong> <strong>financing</strong><br />
Money, Work Force and Materials- these three <strong>are</strong> the prerequisite criteria for a <strong>business</strong>. You can’t run<br />
a <strong>business</strong> without money and <strong>business</strong> <strong>loans</strong> <strong>are</strong> in high demand. Unfortunately when the <strong>business</strong><br />
owner has bad credit, it can be very difficult for that <strong>business</strong> owner <strong>to</strong> qualify for a <strong>business</strong> loan<br />
That’s when <strong>secured</strong> <strong>business</strong> <strong>loans</strong> come in<strong>to</strong> play. These <strong>loans</strong> require additional collateral from the<br />
<strong>business</strong> owner in order <strong>to</strong> be approved. Even <strong>more</strong>, if you have bad credit, then the existence of<br />
security will ensure you <strong>to</strong> <strong>get</strong> a <strong>business</strong> loan easily.<br />
Bad credit <strong>secured</strong> <strong>business</strong> <strong>loans</strong> <strong>are</strong> offered by sites like Leasefunders.com when the <strong>business</strong> owner<br />
offers security in the form of equipment that has been paid off and still holds value.<br />
They base the loan amount on how much the equipment will sell for at auction. Which means the best<br />
types of equipment <strong>to</strong> use for a <strong>secured</strong> <strong>business</strong> loan <strong>are</strong> construction, manufacturing, medical and<br />
other types of equipment that will hold its value.<br />
Equipment that is NOT good for a <strong>secured</strong> <strong>business</strong> loan include:<br />
• Computers<br />
• Restaurant equipment – this surprises a lot of people. But since restaurant equipment can be<br />
purchased cheaply at auction, most <strong>secured</strong> <strong>business</strong> loan providers will not consider using it as<br />
collateral<br />
• Office furniture<br />
The <strong>business</strong> owners credit isn’t a big fac<strong>to</strong>r in providing the loan. As long as the equipment has value<br />
then the <strong>business</strong> owners credit can be very bad and still <strong>get</strong> approved.<br />
The repayment terms for a <strong>secured</strong> <strong>business</strong> loan will vary. It depends on the equipment and financial<br />
strength of the borrower. Typically, they will run 36 months – 60 months.<br />
The documentation required for a <strong>secured</strong> <strong>business</strong> loan <strong>are</strong> as follows:<br />
• Application<br />
• 3 – 6 months <strong>business</strong> bank statements<br />
• List of equipment being used as collateral – should include make, model, year, serial number<br />
and condition<br />
• Pictures of the equipment<br />
• For very large loan amounts they may want <strong>to</strong> see your <strong>business</strong> and/ or your personal tax<br />
returns<br />
Make sure you only submit pieces of equipment that <strong>are</strong> in good working order. Before the bank will<br />
send you a check they will send a representative out <strong>to</strong> your place of <strong>business</strong>. They will make sure the<br />
equipment is in good working order. They will match the serial numbers <strong>to</strong> the ones provided on the<br />
lease, and they will make sure the equipment is truly located at your place of <strong>business</strong>.
Secured <strong>business</strong> <strong>loans</strong> <strong>are</strong> a great way for a bad credit <strong>business</strong> owner <strong>to</strong> obtain <strong>financing</strong>. Most of our<br />
clients use them for working capital and use bad credit equipment leasing <strong>to</strong> <strong>get</strong> new equipment. Not<br />
only can a <strong>business</strong> owner obtain a large amount of <strong>financing</strong>, but in most cases the approval process is<br />
2 – 5 days and then they can have a person out <strong>to</strong> your location within 3 days <strong>to</strong> verify the equipment is<br />
in good condition and match the serial numbers.