When applying for business equipment financing, lenders will typically assess your personal credit score, time in business and annual revenue.
Personal credit score. The lender will review your personal credit score to assess your risk level. Most banks will generally require a 680 minimum credit score to qualify for financing. However, online lenders, such as Currency and CIT, may lend to applicants with credit scores in the low- to mid- 600s.
Time in business. Most lenders feel more comfortable lending to an enterprise that has been in business for several months — although many banks may require two to three years in business. If you’re a startup, you may find more success working with an online lender whose requirements aren’t as strict.
Annual revenue. Lenders prefer working with businesses that have a track record of bringing in revenue.
Generally, traditional banks enforce stricter requirements but often carry more attractive rates. If you don’t meet the high qualifications of traditional banks, you may find more success working with an online lender.
When applying for equipment financing, the lender may require the following documents:
- Equipment quote from vendor
- Driver’s license
- Personal credit score
- Recent utility bills
- Personal and business tax returns
- Business plan
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