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Need Equipment Funding? Merchant account maybe the right solution

To make progress and to grow every small-scale industry and business needs to invest in good quality equipment – used or new. But sadly, it is one of the most difficult hurdles to cross. The availability of equipment is least of their concerns; thanks to the internet which has made online shopping a breeze.

It is the rejection and denial meted out to them by banks that makes this an uphill task. Bank loans often take an eternity beside offering unreasonable loan terms, horrifying interest rates and the need for collateral. In the present scenario where time is of the essence, these small businesses must look at alternative funding solutions.

Providentially, there are several merchant cash advance lenders like us who understand the nuances of this industry very well. As a result, we offer simple straightforward solutions to all kinds of business funding needs without any collateral.

What is Equipment Financing anyway

Equipment financing is one of the fastest, simplest and easiest unsecured business loans that will help you buy all the required machinery and equipment specific for your business; it can be kitchen equipment, computers, printers, vehicles, laundry machines etc. you can often attain almost 100% of the equipment value as loan.

Do you qualify for equipment financing?

Almost all businesses qualify for equipment financing. The only thing that will vary is the interest rate which will depend on the nature of the equipment, credit score, and business financial history.

Is Bad Credit OK?

Merchants with bad credit and high NSFs also qualify for these advances because the equipment can be used as a collateral.

How Does it Work?

Credit card factoring or merchant cash advance basically revolves around the use of credit cards. A lender advances a lump sum to the business in return for a percentage of future sales through credit card. This way the lender gets a percentage of the daily sales that use credit cards.

Merchant cash advance is not suited for long-term acquisitions but is a definite savior in times of cash crunch as a short term unsecured loan. MCA is a healthy alternative for revolving credit as it is less constricting and offers full amount as advance.

Why is equipment financing good for your growth

If the purchase of a new equipment and repairing or replacing an old one will help in business expansion what is stopping you from taking that step? Is it finances? Then by now, you know that lenders like us can solve your financial issues and put your business on the right track.

How much can you borrow?

Your Cash advance depends on:

  • the type of equipment you are buying and if it's used or new.

  • The price of the equipment.

What is the length of the finance?

The term of your equipment finance will depend on the equipment and its longevity.

What about equipment leasing?

If you ask is equipment leasing a better bank loan alternative or a BCA substitute, the answer is NO. It is more advantageous to purchase an equipment than to lease it even with unsecured business loans because at the end of the loan you will own the equipment.

The only time leasing makes sense is when you need it for a short period of time.

Advantages of Equipment Financing

When you opt for an equipment finance plan with a favorable factor rate, you won't have to pay the entire cost of the equipment right at the beginning. You can pay it in easy installments. This is beneficial for small businesses who can't afford the additional expense of a new piece of machinery. The other benefits are:

  • You can hold on to your cash or working capital and use it for Rand D; strategize to expand the business, increase your inventory and improve other areas of business expansion.

  • The availability of latest equipment will increase your productivity and efficiency. This, in turn, will lead to saving on costs and time while furthering your business objectives.

  • Aids budgeting and maintains a healthy cash flow

  • Hedges against inflation because you do not pay the complete cost up front. The financing company or the lender absorbs the devaluation.

  • You can purchase the latest equipment with up-to-date technology which might otherwise be not possible. This will aid in your business progress.

Role of funding positions

Sometimes if you have already taken a merchant cash advance and are still in need of finance you can consider the2nd position, 3rdposition, 4thposition and 5th position loan advances. But they must be your last resort because the interest rates are staggeringly high.

Final thoughts

It is always a tough call when finances are short and opportunities galore. Fortunately, you have us to lighten your burden as you let your dreams take wings and your business reaches new heights.

If you want to know more about equipment financing and why it is beneficial to deal with us, contact us today. There is no obligation whatsoever and no pressure from our side. We will be happy to answer all your queries and explain how the business cash advance works.


Citi Wide Merchant Funding

300 Carnegie Center
Princeton, NJ 08540

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