The Biggest Equipment Loan Myths You May Believe

Equipment Loan Myths Busted:

There’s a lot of conflicting information out there. When it comes to getting the equipment loans your business needs, you want to get right to the heart of the matter. So, let’s take some time to sort through all these equipment loan myths and tales.

Hey, you might think you know everything that comes with trying to get an equipment loan. But what if there is some stuff you believe that’s not true? It might be holding you back.

The truth is, financing misconceptions are common. 

Your Credit has to be Perfect

Possibly one of the biggest of the equipment loan myths is believing an 800 credit score is what you need for great rates.

“You’ve gotta be perfect to get loan for business equipment.” “Cash is king.”

Actually, there are a lot of buyers that fret having their credit looked at. 

The truth is, you don’t have to be perfect. Having a spotless credit history is a difficult task, and loan companies know that. Yes, having good credit will definitely improve the likelihood that you will get a loan. But you’re not down and out if your credit isn’t absolutely stellar.

Those with a score of 550 should consider themselves in the clear. It all depends on the equipment you’re trying to fund, and the individual stipulations of your loan. Talk with the loan company, and you can see what kind of plan will be worked out.

While credit plays a role, there are many other factors that will determine your rates. Time in business, down payment, your industry, and many other factors will contribute to what type of financing you can get approved for.

Getting Your Loan Will Take Months

Yeah, sometimes you need to get a job done, and you need to get your equipment sooner rather than later. But you might be wondering what to do, because don’t loans take forever to get?

No, you’ve heard wrong. Many loan companies specialize in getting you the loan you need, when you need it. So if you need the money in your hand, they can get the money in your hand. The equipment loan myths of turmoil waiting to get equipment does not have to plague your transaction. Companies want to get you in the door, get you what you need, and on your way. If you’re prepared, it will only go faster. 

It may take you a little time to produce the documents that you need for applying for the loan, but the money will be available for you when you’re approved and the application has gone through. Sometimes, it can be in as little as two days.

You Have to Offer Collateral First

Many loans require that you put up collateral. But you have to have money to do that. Isn’t that what you’re taking a loan out for in the first place?

You don’t have to offer collateral for every single type of loan. Unsecured business loans, merchant cash advances, unsecured business lines of credit – all of these are loans you can take out without collateral. Instead, your lender might ask you to give your own personal guarantee, which is essentially saying that you’re the one is is personally responsible for paying back the money that your business owes if you end up defaulting on your loans.

The Loan Has to be Huge

If you want to get a loan, you might think it has to be a large amount of money for you to be able to apply at all. Maybe you need a loan for something small, but you’ve been thinking it seems silly to apply for any amount that’s under a thousand dollars.

Again, guess what? Totally not true. You can get a microloan through certain lending companies for as little as 500 dollars. Sometimes, you just need a small amount of capital. There’s nothing wrong with that.

At TopMark funding, you get pre-qualified for lending in two hours. We’re busting all the equipment loan myths to bring you the best equipment loan funding that you can find, with the least amount of stress involved. You get funded in less than 24 hours after your signed contracts are returned. Quick, dependable, and actually real. That’s the service we offer you.