21 Jun Equipment Loans: Top 5 Most Popular Business Loan Criteria (3 of 5)

Minimum Criteria: Equipment Loans (Part 3 of 5)

This is part 3 of 5: (view previous)

Businesses generally need some kind of equipment to operate. Buying them outright versus leasing or using an equipment loan is sometimes the best way to manage cash flow.

If you’ve ever had a car lease or loan, you’ve essentially had an equipment loan. When taking out an equipment loan, essentially you are using anything from computers to heavy machinery as the collateral (security) and you’ll pay back the loan at a fixed monthly rate for a fixed amount of time. Interest rates on equipment loans generally vary between 7% and 30%.

Equipment Loan Minimum Criteria
Years in Business Required: Startups qualify up to $50000 in purchase value.
Minimum Revenue: $0+
Personal credit score 600+
Company credit: No unpaid defaults.
Tax debt: Yes in some cases
Profitability required? Not considered
Bankruptcy allowed? No.
Credit Card volume a factor? No.
Accounts Receivable a factor? No.
Second position allowed? Yes in almost all cases.

Next loan type coming up is Import Finance (Trade Financing)

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