Honesty is the Best Policy!
There are many instances where a business is better served looking elsewhere for financing.
Yep, we’re actually one of the few finance companies that will tell you that because we believe in the power of transparency.
When we encounter someone who clearly qualifies for a bank or SBA (small business association) financing - both of which are less expensive than the products we can offer, our first question is likely to be whether they would be better served to take the loan or equipment lease through a bank or SBA lender.
Sometimes the answer is "I don't want to go through the hassle," or "I don't have the luxury of waiting two months for the money," and that's fine - we are happy to help in those instances, but if you can get much cheaper financing from your bank and you've got the time and the willingness to go through that process, that's usually what you should do.
When You Should Look Elsewhere For Equipment Finance?
If you are buying equipment from a dealer who offers stellar financing rates (and you qualify for them) you should probably take them up on it. Some dealers offer 5% or lower (even 0%) financing rates for highly qualified borrowers, and if you can get that financing, we're not going to be your best bet.
When Should You Look Elsewhere For Working Capital?
If you have no or very poor credit (under 550 credit score), lower sales (under $100,000 per year), no collateral, and no time in business, the financing options available for a small business loan are likely to be so outrageous that other than in exceptional circumstances, we won't be able to justify (by our own ethical standards) offering you money that amounts to (again, in our opinion) putting you in a situation you can't get out of.
(For equipment acquisition, however, if you've got some collateral, we can find you a reasonable option no matter what your other circumstances are.)
If you fall somewhere in the middle, not the absolutely most qualified, and not on the verge of bankruptcy with no assets, we can usually find you a reasonable option. If you're not sure if we're a good fit, call us, and we'll tell you very quickly if our options could make sense for you.
