With an ever-expanding roster of equipment lenders, it can be difficult to determine which option is the best for your business. Although there is no one-size-fits-all when it comes to equipment financing lenders, there are a few ways to break down what your lending needs and preferences are. Our CEO, Vernon Tirey, advises all small business owners to seriously consider the following three questions when determining their perfect lender—or, of course, to visit the LeaseQ marketplace for instant quotes from multiple lenders with one application:
- How big is their pocketbook?
All good relationships depend on compatible spending habits, and small business borrowers should look for a lender that finances equipment in the dollar amount they need. Lenders typical specialize in only one or two dollar amounts: Micro-ticket under $25,000; Small-ticket under $250,000; Mid-ticket under $5 million; or Large-ticket over $5 million.
- What’s their “type”?
Do they like restaurants? Or would they rather be at an amusement park? Lenders generally specialize in 4-8 equipment types at most, so it’s important for small business borrowers to seek a lender in their specific equipment vertical, whether that be restaurant, medical, construction or any of the other 30 types of equipment!
- How’s their credit?
No lender handles A through D credit, so it’s important for small business borrowers to take a look at their own credit profile, and seek a compatible lender.
By seeking solid answers to each of these questions, you will be able to find your perfect lender match with less confusion and stress. It is important not only to understand what each lender can offer, but also to express what you need and discern how that fits into their requirements.
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LeaseQ’s network of lenders span all industries and business needs and we work to find you the best fit for your equipment financing needs. We encourage you to think about these three questions in preparation for determining lender options.