What are financing rates for equipment: are you getting the best deal possible?
Equipment leasing and financing is a great way for your business to conserve cash and help your business run smoothly and efficiently.
What is also great about equipment leasing and financing is that you can get financing without having perfect credit. Many leasing companies can match your credit history with a financing program that is best suited for your credit score.
Additionally, if you follow some simple steps, you can still get good rates on equipment financing if you know how to fix up your past credit problems. Some business owners do this in advance of applying for their lease.
Length Of Financing Term
When you enter into an equipment leasing agreement, you have financial flexibility. When you’re looking for what are financing rates for equipment you need for your business, you have many choices. As a business owner, you always have the right to accept or reject the rate you receive.
Once your financing term is set after you sign your lease financing agreement, you’re locked in for the entire term. So make sure you are shopping around to get as good a rate as you possibly can. And of course to get the best rates, a good credit score will certainly help.
But in many cases, you don’t need perfect credit or for your business to be in business for a long period of time to get a good rate.
In fact, if you fall into either of these categories, leasing with LeaseQ may be a good solution for you.
Check out this video to see how you can in fact get financing for the equipment you want with LeaseQ…even if your credit is less than perfect:
[youtube]http://youtu.be/pLcbN_3cmwM[/youtube]
If for some reason, you can’t see this video click here.
What Are Financing Rates For Equipment For People With Bad Credit?
If you have past credit problems, without a doubt, you’ll likely start out with a higher interest rate on your new equipment financing. But how do you know you’re getting the best rate based on your credit score?
Another reason why its a smart idea to see what kind of financing you qualify with our simple lease calculator here.
When deciding on your equipment financing, make sure you factor the new loan amount in with any pre-existing loans you may have – don’t over extend yourself. These factors will affect your rate as well.
To avoid higher rates in the first place, the simplest thing to do is the most obvious: make your payments are on time. It’s as simple as that. Do not make it harder than it needs to be.
But if it’s too late for that – and your credit score is low, your equipment lease financing will likely come with a higher interest rate. However, if you make your loan payments on time over many months, you’ll see your credit score go up. It may go up slowly, but it will go up (factoring out any other extenuating circumstances).
Although your finance rate on your lease will not be lowered automatically due to your diligence, you can attempt renegotiate a lower rate once you’ve established a solid payment history with the lender. The financing company may then reward your diligence by lowering your interest rate. You have to initiate this however – nothing happens on its own.
This is why it is so important that you do not over extend yourself – especially when you’re first starting out. Many beginners do this – so you should avoid it at all costs. Be smart about going into multiple loans at the same time and use good judgment.
Eliminating Past Debt to Get Better Financing Rates
Many businesses struggle to get a good interest rate when determining what are financing rates for equipment leasing. Old debts or any outstanding liens will likely adversely affect your credit score and your financing rates. If you owe old debtors money still, these factors will make it very difficult for any equipment leasing and financing company to take you seriously.
So if you have outstanding debts, it’s always better to settle a bad debt than it is to try to sweep it under the carpet and let it ruin your record forever. You can try to settle the debt with the company yourself or just simply pay it off. If need be, you can go to a debt expert and get professional assistance.
The point is this: if you have outstanding debts and are looking to finance and lease equipment, it’s better to settle those debts or get on a debt repayment plan as soon as possible to re-establish your credit.
Of course, to know what are financing rates for equipment that your business needs, click here for a free quote. You’ll quickly see what kind of financing program you qualify for. Feel free to contact us to see how we can help as well.