Blog – How to Secure the Best Rates for Equipment Financing
Equipment financing is a popular option for businesses looking to purchase necessary equipment, trailer and trucks without having to pay the full amount upfront. However, the interest rate you receive on your loan can significantly impact the overall cost of the equipment, making it important to secure the best rates possible. In this article, we’ll discuss some tips to help you find the best rates for equipment financing.
Shopping Around
At Easy Equipment Finance we already shop around for you, by working with lenders who offer special programs and exceptional rates, we can be a great option for those who don’t want to waste a bunch of time and have to hassle with a lot of research or legwork.
If that’s the case then, the first step in securing the best rates for equipment financing would be, to have Easy Equipment Finance shop around for you. This can be done by contacting us directly to tell us what equipment you are interested in. or fill out the apply page on our website and work with our team to compare programs. This will help you find the lender that offers the best terms and interest rates for your needs without having to do the legwork yourself.
Improve Your Credit Score
Your credit score is one of the most important factors that lenders consider when determining the interest rate for your equipment financing loan. If your credit score is high, you’re more likely to secure a lower interest rate. You can improve your credit score by paying your bills on time, keeping your credit card balances low, and limiting the number of credit inquiries on your report. If you’re working on improving your credit score and need help, please ask us to provide you some more detailed information.
Offer Collateral
Many lenders require collateral when you apply for equipment financing. This could be a lien on the equipment you’re purchasing, a personal guarantee, or a pledge of other assets. By offering collateral, you show the lender that you’re committed to repaying the loan, which can result in a lower interest rate.
Negotiate
This normally only applies in a borrowers market, which is not that often, but If you have a strong credit score, plus a solid business plan, and stable existing business. You may be able to secure a lower rate. You can also negotiate other terms of the loan, such as the repayment period or the amount of the down payment.
Take Advantage of Promotional Offers
Lenders sometimes offer promotional rates to attract new customers. We keep an eye out for any special offers or promotions that may be available and you can ask us if theirs any current promotions you may be eligible for. We are always seeking excellent promotional programs to offer our clients.
In conclusion, securing the best rates for equipment financing requires careful consideration and planning. By having Easy Equipment Finance shop around for you, working on improving your credit score, offering collateral, negotiating, and taking advantage of promotional offers, you can increase your chances of securing a loan with a low interest rate. This will help you reduce the cost of your equipment and keep your business on track to success.