Can I Finance Equipment If I Have Bad Credit?
The majority of lenders want to lend to borrowers with personal credit scores of 650 and higher.
However, we do work with many private sources that can help borrowers in many situations.
We've helped borrowers with zero credit, credit scores in the low 500's, and special issues such as recent bankruptcies and tax liens get financed for equipment.
Not everyone will qualify, but there are many circumstances in which a low credit score is not a deal killer.
Here are several ways you can qualify for equipment leasing and loans with a low credit score:
- Get a cosigner
- Offer collateral
- Make a sizeable down payment or security deposit
- If your business is strong - good revenues and profits - many lenders can ignore challenged credit
However, we're super careful to make sure you know that the looser the criteria the higher the rates will be.
Here's an important rule for bad credit equipment leasing:
The "harder" the equipment you're buying is...
...the easier it is to be approved.
What does that mean?
If you're buying something that holds it's value well, such as:
- Construction Equipment
It will be easier to be approved than if you were trying to finance equipment that was "softer."
Soft equipment is anything that's close to worthless if it gets repossessed, like:
- Gym equipment
- Any item that costs less than $10,000
That doesn't mean soft equipment *can't* be financed when you have credit problems... but it is always easier to finance hard collateral.
More Equipment Finance 101: 7 Basic Questions
- How much does it cost to finance or lease equipment?
- What is the difference between an equipment loan and an equipment lease?
- How do I qualify for equipment financing?
- Can I still lease or finance equipment with bad credit?
- Can a new business qualify for equipment financing?
- What are the tax benefits of equipment loans and leases?
- How does the process work?