3 Critical Facts About Bad Credit Equipment Loans

Like many business owners, you need an equipment loan to increase your operational capacity and ultimately generate more profit. If you feel as if a bad credit score is standing between you and that critical goal, you don’t have to start selling assets or equity. First, check out these 3 critical facts about bad credit equipment loans that you need to know now — not later:

Bad Credit Equipment Loans Fact #1: No, you don’t need great (or even good) credit.  

There is no legal or regulatory requirement for borrowers to have great — or even good — credit scores to get an equipment loan. Different lenders have various policies ranging from restrictive to flexible.

For example, here at National Business Capital we don’t believe that credit scores are the be-all-and-end-all of a borrower’s credit worthiness. We look at many data sources and factors, and credit scores are just a small piece of the overall puzzle. That’s why when banks say “no” to about 90 percent of business loan applications, we say “yes” to about 90 percent.

Bad Credit Equipment Loans Fact #2: You have multiple options.

There isn’t just one type of equipment loan, and it’s in your best interest to explore all of your options vs. restrict yourself to one or two products.

At National Business Capital, in addition to equipment financing we also offer short and long-term loans (i.e. working capital loans), accounts receivable financing, commercial mortgages, business lines of credit, commercial mortgages and more. In addition, many of our borrowers opt for more than one funding solution (e.g. equipment financing plus a business line of credit) to maximize their flexibility and leverage, and minimize their cost and risk.

Bad Credit Equipment Loans Fact #3: You have the freedom to choose any vendor.

Some lenders that offer bad credit equipment loans will insist that you purchase from a limited pool of vendors. While they’ll tell you that this is for your security (saying things like “we’ve confirmed that these vendors are professional and efficient”), the real reason is far less noble: lenders reduce their risk when they — rather than you — get to choose who you can buy from, and who you can’t.

This policy is arbitrary and clearly not borrower-friendly, which is why we don’t insist on this here at National Business Capital. If you choose us for your equipment financing needs, you’ll have the full freedom to work with any vendor(s) that you choose. After all, it’s your business, isn’t it?

Learn More

To learn more about rapidly getting an affordable equipment loan — regardless of whether your credit score is impaired or bad, or even if you’ve had a past discharged bankruptcy or current open tax lien — contact National Business Capital today or fill out our two minute application:

About the Author, Megan Capobianco
Megan Capobianco is the Marketing Manager at National Business Capital. Megan is passionate about helping business owners along their journey - providing them with relevant content they can use in their day-to-day operations.