Why more businesses are turning to secured business loans to get financing

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

Secured business loans are a great way for a bad credit business owner to obtain financing. Most of our
clients use them for working capital and use bad credit equipment leasing to get new equipment. Not
only can a business owner obtain a large amount of financing, but in most cases the approval process is
2 – 5 days and then they can have a person out to your location within 3 days to verify the equipment is
in good condition and match the serial numbers.