Obviously, the economy has been in the news quite a bit lately, and regardless of the perceived solution, one thing seems to be certain, credit will be harder to obtain.
This leads to people wondering if their friendly equipment financing company will still finance equipment for them. I’m here to tell you the answer is most likely yes. Now, before you do the happy dance, let me explain a few things first:
- Equipment financing companies are not banks (there are no runs on deposits here). So we’re far more flexible.
- We also specialize in financing equipment.This means we are typically friendlier to businesses than your common bank, especially with equipment leasing and the like.
So, regardless of what you hear on the news, we’re still here. However, there are a few caveats we have to discuss:
- We finance equipment (or lease equipment). We aren’t lines of credit. You have to acquire a specific piece of needed equipment.
- While we are friendlier to businesses than banks, we still have standards in regards to creditworthiness, standards that we will likely have to take a harder look at.
- We finance equipment for strong, established businesses looking to expand. We did that before the banking crisis, and we’ll do the same during and after the banking crisis. This means we don’t provide funds for risky startups and the like. Never have, never will.
Basically, what I am trying to say is that equipment finance companies historically do not take on risky debt. Thus, business for us will go on as usual. In fact, it’s likely to increase, because in times like this, banks will often turn away perfectly good borrowers for no real reason than a simple credit freeze.
To us, that’s bad business and if you are creditworthy, and need to finance equipment, look to an equipment financing company. We were here yesterday, we’re here right now, and we’ll be here tomorrow. We just don’t give out free toasters.