Smarter Finance USA Blog

Welder Financing: What are Rates to Finance a Welding Machine?

Posted by Rob Misheloff

As a husband and father, the best example I can set in the world is by helping others. That’s why I’ve built my career around helping my fellow business owners grow their companies. My hope is that this website and my company help you to grow your business and achieve your goals.

 

welder-financing.jpg

We talk to plenty of folks about financing a welding machine (cutting equipment too), and most conversations start with the same two questions:

  1. Who qualifies to finance welding equipment?
  2. What are the rates and terms for welder financing or leasing?

A brief scan of the first page of Google turned up two types of companies:

  • Some companies say nothing other than that they can finance or lease welders.
  • Others tell you rates that are total crap

Hint:

Do you see a payment "calculator" that only shows the best payment?

That's like those car ads in the newspaper that show a Honda Civic for just $39 a month with teeny tiny little print that says, "only one at this price."

You would probably appreciate being able to finance your welding equipment without getting lied to about what your payments will be, right?

Will You Qualify to Finance Welding Equipment?

welding-machine-financing.jpg

Is your credit good?

If you:

  • have good credit...
  • ...are buying new equipment....
  • ... and have been in business for a reasonable amount of time (years, not months)

You won't really need to worry much about qualifying. In fact, you may be wondering whether you can finance your equipment for free.

In many cases, you can get zero percent financing - for example if you are buying a welder through Miller they offer 0% financing through Wells Fargo.

If you're offered zero percent financing, that's something you should obviously take advantage of - in those cases we wouldn't be a good option for you.

If you're newer in business, don't have perfect credit, or are not buying new equipment, those are cases where we may be a good funding option.

Finance or Lease Welding Equipment With Bad Credit

welding-machine-leasing.jpg

If you don't qualify for free money, there are many instances in which we may be able to help.

Here's the scoop:

As your credit gets worse, or if you just started business it will be harder to qualify, but most of the time there is a solution.  

Here are some general rules of thumb: 

  • "Scratch & dent" credit (just a couple of minor boo-boos) is no problem
  • Just starting up but ok or better credit -  you are usually A-OK
  • If you've been in business for at least a few years often times we can make a deal work even if credit is a little on the yucky side

If your business is already operating and there's some level of strength, usually we can find a way to get you money even with bad credit.

That "strength" could be:

  1. Strong revenues (sales) relative to the cost of the equipment you need to purchase
  2. Collateral
  3. A cosigner
  4. Higher down payment amount than normal

For startups, the same applies, but it's a little bit tougher.

We often get inquiries from someone trying to start a business with a 500 credit score and $40 in the bank.

If you're trying to start a business with no funds and lousy credit, you're going to have a bitch of a time finding someone insane enough to loan you money.

However, if you're starting with at least and your credit isn't too horrible (630+ credit score in general) many times a solution can be found.

 Often times, a strong cosigner can help get you over the hump.

What are Payments for Welding Machine Financing?

finance-welding-equipment-1.jpg

So, you started out reading about the folks who only show the cheapest rates.

What's even worse is, often when someone qualifies for the cheapest rates, they can just go get zero percent rates.

Which means that almost always, when you see a payment calculator on a website talking about welding equipment, you're looking at total garbage.

That's pretty lame, right?

The truth is this:

Equipment financing is pretty complex, so there's not really a "one size fits all" answer. The range of payments is pretty huge based on your situation.

However, since we work really hard at not being lame, how about we show you the payments per $10k worth equipment financed, going from zero percent financing all the way up to the highest rates you could see...

Let's assume you're financing over 5 years, and own the equipment at the end (for a final payment of $1).

Special Warning: 

Payments can be lower if you do a true lease.

Many of our customers have been quoted unreasonably cheap rates and find out later that they entered a contract with a large balloon payment at the end.

We're always happy to help you compare "apples-to-apples" because you should always know what you're getting into. 

 

Welding-Machine-Payments.jpeg

You may have noticed, in the worst case scenarios the payments kind of look like they suck.

That's why nobody likes to tell you what things cost for real. 

Here's the deal:

Depending on your risk profile, we may be able to get you low payments, or your payments might totally suck...

... but we'll tell you the truth so that you can make a business decision without wondering what shoe is going to drop next.

Need to Finance or Lease Welding Equipment? Give us a call at (866) 631-9996 or click on the picture below.  

 New Call-to-action

Topics: Leasing

Get into the conversation, leave a comment.

About this blog

It's super simple... We educate you on everything you always wanted to know about small business finance*

*but couldn’t get a straight answer to!

Subscribe to Email Updates

Smarter Finance Equipment Leasing

Recent Posts

Smarter Finance USA Working Capital