Apply Now For The Best Bad Credit Equipment Lease
An equipment lease is a great alternative to a bank loan. Some equipment leasing
companies even have programs for business owners with bad credit! A lease is a financial
instrument that can only be used by businesses to purchase business equipment.
Equipment leases make it easier for
people with poor credit to obtain the
financing they need. These leases allow
bad credit business owners to expand
your businesses even though most
banks have already turned them down. Bad credit equipment leases hold the key to
allowing companies that are currently struggling to keep up with the ever changing
technologies and make their businesses competitive.
Equipment leases are secured by the equipment they are used to purchase. That is why
they are open to people with bad credit. The leasing companies know they only need to
repose the equipment in order to be repaid so they feel more at ease about lending the
money. But sometimes the credit score can be so low that not even the security of the
equipment is enough to get approved. At that point, additional security in the form of more
equipment, real estate, gold or bonds can be used as additional collateral.
Bad credit equipment leases tend to have a higher rate than most equipment leases. For
that reason its recommended that you take them out for a short term. Even though they
may offer you a 60 month term, you should opt for a 24 or 36 month term if you can afford
the monthly payment.
You should also work on improving your personal credit, so that the next time you need
financing. Equipment leasing has one last benefit for people with bad credit: its a great way
for you to start building GREAT business credit! By making timely payments and having
them reported to services such as Dunn and Bradstreet, you will find it easier in the future
to obtain financing for your business!