Financing EV Chargers for Business: A Practical Guide
Electric Vehicle (EV) chargers are becoming more common – and it’s happening fast.
They serve as...
If you've just started your business, there are far fewer options available to you than if you've been operating for a year or more.
The options available for new businesses typically are:
- SBA lending
- Alternative startup loans
- Equipment or real estate-backed loans
- Equipment finance and leasing
Let's talk about each of these:
SBA Loans for New Businesses
These can be tough to come by.
If you can qualify, though, they are a great option.
Rates will be low (usually 7% or less) and can have relatively long payback terms (sometimes ten years or more, depending on the product) - which leads to very reasonable monthly payments.
Here's the problem:
Very few businesses will qualify, and the process is long and cumbersome. You should have good credit, collateral, and a lot of patience. That said, if you can qualify for SBA lending, it is usually your best option.
Unsecured Startup Loans
There are quite a few programs for businesses that have been around for at least a year and very few for startups. However, with a 700+ credit score, we can help you look into an excellent program.
- Rates range from 7-12%
- Loans up to $150,000 ($250,000 for healthcare businesses)
- Terms up to 5 years
To get qualified for this program, you may click here. Other than this, there aren't many other sources of unsecured financing for startups. (Due to the large risk inherent in a new business).
Loans backed by Equipment or Real Estate
It's really simple: If you can put up some collateral, you can usually get a loan for up to 50% (sometimes 70%) of the value of the asset you're pledging.
Preferred assets are real estate, titled vehicles, or heavy equipment.
Loans for Equipment
Rules are a little bit different for equipment, because the lender can take the equipment if you don't pay. We talk more about equipment financing for new businesses here.
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