Equipment financing helps businesses that require new or upgraded equipment to continue operations, expand their company’s growth, or prepare for new business opportunities. Anyone who has faced the need for new equipment in a short amount of time understands the urgency and potential hardship. Financing doesn’t have to be frustrating, especially when you have the right lending team to help you out.
Large investments typically require a healthy sum of cash. However, equipment financing allows business owners to avoid paying certain upfront costs at the time of purchase. It can also help with tax incentives for small businesses. These benefits are why many business owners consider equipment financing for their inventory needs.
If you are in need of new or used equipment and are in search of alternative financing options, we have a few tips on how to approach a lender to get your equipment financing application approved.
Keep Current Tax Returns
Make sure you have updated tax returns. Fill them out and file them on time. It can prove challenging if you have been late before or have requested an extension. Gathering these documents ahead of time will make it easier for the lender to review your business status. Additionally, planning ahead reflects your financial accountability, a favorable characteristic for equipment financing applicants.
Stay Active with the State
Be active and in good standing with the Secretary of the State. Your business must be properly classified and registered as per your state laws and regulations. Additionally, make payments and file all paperwork on time. Ensure that you follow all business and tax compliance by keeping your records current and accurate.
Stay Current on Bills and Taxes
Lenders look at your history of borrowing. Staying current on all debt, paying your bills on time, and making sure you do not have any tax liens will not only help you be approved quickly, but it can also position you for better options, i.e. longer terms, lower rates, and/or less money down.
Don’t Mix Business and Pleasure
Separate your business bank account from your personal activities. Combining personal and business assets can create confusion and disrupt the process of your application. All of the record-keeping for your business should be kept in its own file for easy access and review.
Audit Your Online Reputation
Maintain a clean, online reputation. Make sure your name, address, and phone number (NAP) are consistent across the Internet to help customers find you more easily. There is an endless number of listings that may have a slightly altered version of your business name or address. Perform an audit of your business information to ensure it is listed accurately across the board. Start with the most popular citations first, such as Google My Business, Yelp, and other top listing and review sites.
How LendSpark Can Help
Do you need new or additional equipment to help your business grow? Have you tried other lending options with no luck? We understand how important financing is to any business owner and can provide you with timely lending solutions that meet your specific needs.
We have helped numerous businesses secure the equipment financing they need in order to help their businesses thrive. Let us help you do the same. Contact us today.