If you're new in business, it's pretty hard to find capital to finance your equipment, and for many the equipment is the most important (and expensive) piece of the business.
Most equipment financing companies won't touch startups and of those that do, the majority want to deal only with borrowers that have pristine credit or so much money in the bank that they don't really need financing.
Here are 4 of the best equipment financing companies for startups
SLS financial, out of Kansas City, MO, is one of the good guys out there when it comes to leasing. We particularly like companies that specialize in one type of borrower and then find ways to help people that meet this focus get the equipment they need to run their businesses.
SLS specializes in "tough deals" - new businesses and/or challenged credit profiles (all the way down to "pretty bad" credit, but not unbelievably bad) and finds ways to make any deal that reasonably makes sense work.
We deal with SLS and find them to be nothing but upfront and helpful.
Baycap, out of Redondo Beach, CA, does larger transactions (generally $75,000 and up) for companies where the owner(s) have reasonable to great credit. If you run a startup, you've got good personal credit, and some amount of money to make a down payment on your equipment, Baycap can provide financing at very reasonable rates (reasonable being relative to the risk involved in being a startup).
Baycap doesn't only do startups, but we particularly like the program they have in place. When talking to others in our industry about Baycap, nothing but good things are said.
Maxim Commercial Capital, out of Los Angeles, CA, is a collateral based lender. What this means is that if you have enough collateral, Maxim can get you the financing you need for almost any situation.
One thing that is unique about Maxim is their special financing program for truckers, an industry that most lenders won't even consider. Any credit is considered and you can get financed for as little as 25% down (cash and/or trade).
Maxim is another company that if you ask around the industry nobody has a bad word to say about them.
Best Companies for Equipment Leasing with Bad Credit
We already spoke of some companies to consider if your credit is bad, but a there are some other good options for bad credit borrower:
Banker's Capital, out of Northborough, MA, is another great financing resource. They are another of the revered names that if you ask around the industry you'll hear nothing but glowing reviews of.
Some good things about Bankers Capital
When they say they will consider financing any industry, they really mean any industry.
They've got a rate that is reasonable relative to hard-to-finance situations, and as situations get tougher, instead of ramping up the rates to the point that hurt your cash flow, they increase collateral requirements.
Like any other lender, Banker's Capital is not the right choice for everybody, but when our customers fit the Banker's Capital "mold" there is no hesitation in recommending them.
Best Equipment Leasing Options for Established Businesses
For established businesses (2+ years) where the owners don't have miserable credit, there are really a lot of choices, and apologies in advance for those who will surely be left out.
Banclease Accptance out of Irving, TX, specializes in medium-sized ($50k+) transactions with credit quality of "OK" to "A", and they've got pretty good rates.
Also, they are some of the nicest people in the industry, which is always a bonus. My experience with Banclease is that when a transaction doesn't fit their "mold", they care enough about the customer to suggest a competitor that can help.
One of the good things about BSB Leasing, out of Englewood, CO, is they have one of the widest "ranges" of any of the lending companies out there. As long as you've got reasonable credit, BSB can usually find a way to get you funded.
Whether you're a startup and you need $5,000 for equipment or if you're looking to purchase $500,000 of equipment, BSB will have a program for you.
Like every other company on the list, I have never heard a negative word said about these folks.
Working with the Best Equipment Lending Companies
You can access all of these companies through us as they are all "funding sources" meaning they deal primarily with equipment leasing brokers such as Smarter Finance USA.
Note: if you are part of an *awesome* equipment leasing company and you are not on this list, please contact me to be featured in the next go-around.
To find the best leasing solution for your situation, please contact us.