Since I work in equipment financing, I’m often asked “Hey Chris, what are some of the advantages of using an equipment financing company over a traditional bank?”
There are a lot of answers to that question, all of which I’m sure to go over at some point. But for today, lets start right at the beginning- at the application and approval process.
When you go to the bank to obtain equipment financing, you need to provide a lot of information. Tax records, balance sheets, financial statements, the name of your first born child; it can be a daunting and time-consuming process. Time you probably don’t have.
Then you wait for an answer. Sometimes you wait for what seems like an eternity. More time passes. Your first born grows up, and now you need to use your second born as collateral. OK, I exaggerate, but it is a long process.
Conversely, when you use an equipment financing company, it’s a much simpler procedure. Usually only one simple online form that you can fill out in the comfort of your home.
Imagine – no fumbling in the basement for tax statements, and no complicated questions. They also leave your kids out of the equation!
And here’s the best part- you typically get an answer in a matter of hours. Not days.
To be truthful, it almost sounds like a no-brainer, doesn’t it? Well, it is, and this is why equipment financing companies are very popular with small to medium sized businesses. And it’s also why I really have to get back to work now – duty calls!