Dallin Hawkins From Integrity Financial Groups Explains How to Qualify for Equipment Financing

MIDVALE, Utah, Oct. 13, 2016 /PRNewswire/ -- Dallin Hawkins, Director of Sales & Operations - Integrity Financial Groups, LLC Discusses Qualifying for Equipment Financing & Used Equipment Financing

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As a leader in the Equipment Finance industry, Integrity Financial Groups have created several funding partnerships that give our customers the proper financial diversification they require in a funding partner. We believe that our commitment to building valuable business relationships, our expertise in equipment and our unparalleled flexibility to create programs tailored to meet each company's unique operating requirements and tax implications is what has made us one of the fastest growing companies in our industry.

Obtaining commercial equipment financing and commercial truck financing can be challenging. Not all businesses qualify for financing. So how do you qualify for used equipment financing or heavy equipment financing?

There are many programs available for most situations.  Whether your company is a startup, has poor credit or lacks industry experience, you can still qualify for used equipment financing or heavy equipment financing.  In instances like these, most times you may need a larger down payment or additional collateral.

There are 4 basic types of qualifications for equipment financing:

1. Credit Based Equipment Finance – Credit based equipment financing is almost always less expensive than collateral based equipment financing. Credit based lending means that if one has ok credit, in most cases one can finance your equipment.

Example 1: If you have "fair" credit (FICO 620-660), have been in business for more than two years, and have decent cash flow, you will qualify.  These rates may not be the lowest rates, but they won't be outrageous.  If you are Start-up Company, programs are available if your credit is good, but financing will be more expensive.  Remember, lenders finance based on risk and the ability to repay the loan or lease.

2. Cash Flow Based Financing – If you have some credit challenges but run a strong business, your credit score may often be ignored. Imagine you have a very low credit score and need funds to purchase $30,000 worth of equipment. If your business has revenues close to $30,000 per month, in many cases you can still get approved for financing.  Your payments will be significantly higher than if you had great credit in these cases, but the money is available to you.  You may also be required to put a larger down payment on the piece of equipment.  This path can be helpful in getting the revenue generating equipment and rebuilding your credit.

3. Collateral Based Financing – You can be approved to finance equipment with almost any business or credit challenge if you can make a 50% down payment and/or offer additional collateral (e.g. a truck with a free and clear title).

Example 1: If you needed to finance that $30,000 piece of equipment and could offer $30,000 worth of machinery or vehicles as collateral, the majority of cases you'd be approved.  The risk for the lender is decreased and it doesn't matter that your credit is poor.  Even a discharged bankruptcy or past due child support can be over looked in most cases.

4. Story Based Financing – This is a VERY rare type of financing. Story lenders look for certain markers or strengths to qualify the company.  This varies lender by lender and is hard to define those areas.  As with any financing, the risk must outweigh the benefits.

Hopefully these four tips to qualify for used equipment financing and heavy equipment financing have helped you in making your equipment finance decision. To find out more about our many equipment finance options, contact us today at (801)-386-8222.

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Equipment Finance | Used Equipment Finance

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SOURCE Integrity Financial Groups, LLC

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