You have the perfect business idea.
You may have your business plan written and your space lined up.
One of the highest costs you may face is getting the equipment you need.
Depending on the type of business you’re planning to open, you may need computers, kitchen equipment, phones, and more.
This may be especially intimidating if your credit history isn’t the best.
Can you get no credit check equipment financing?
Although most lenders will look at your credit, they may be able to check your report in a way that doesn’t hurt your credit.
The right lenders will also look at the big picture and make an informed decision about your situation.
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Alternatives to No Credit Check Equipment Financing
As you look into alternatives to no credit check financing, you’ll find a variety of financing options, including equipment loans, lines of credit, personal loans, and more.
Equipment loans are often collateralized loans. This means that the equipment serves as collateral for the loan. If you are unable to make your payments, the lender will take the equipment. Although this may sound harsh, this helps lenders lower their risk. If you don’t pay, they can seize and sell your equipment, which will help them recover their losses.
Equipment loan lenders may be more likely to work with those who need low or no credit financing since there is collateral involved.
A soft or no credit check line of credit may be another option. A line of credit is similar to a credit card, in that you work with a financial services company and have a maximum amount you can borrow.
You don’t have to use the full amount of a line of credit. You can use as much or as little as you need up to the amount you’re approved for.
You also don’t need to pay interest until you actually withdraw funds. Once you start using funds, you are charged interest, and you will need to make monthly payments on your line of credit.
You may also be able to get soft or no credit check computer financing, as well as financing for other equipment you need, through a personal loan.
A personal loan is straightforward. You request to borrow a certain amount. If you’re approved, you can use the loan for anything you need. You start making monthly payments as soon as you receive the funds.
Many lenders who provide personal loans have flexible criteria for borrowers. You can have less-than-perfect credit and still obtain a personal loan.
With some equipment, you may also be able to work directly with the equipment manufacturer to find financing. You may be able to find finance phone no credit check option alternatives, for example. The phone manufacturer may be able to help you finance your phone system.
You may also be able to lease all or part of your equipment. With a lease, you make payments on the equipment each month. These payments are typically lower than what you would pay if you purchased the equipment.
With a lease, you don’t own the equipment. The leasing company owns the equipment, and they often will maintain the equipment as well. Once the term of your lease is finished, you may be able to buy the equipment. You may also have the option of leasing newer equipment, so you always have the latest technology.
Understanding Credit Checks
As you look for financing and consider your equipment needs, you may want to avoid a credit check.
This is understandable if your credit isn’t the best. Some form of credit check may be unavoidable, though.
You may have heard that credit checks can hurt your credit. It’s true that the number of credit checks you have can impact your credit score. This is only true for hard credit checks, though.
Some lenders use an alternative called soft credit checks. Soft credit checks do not hurt your credit score. They are often used by potential employers to check your background.
It’s unlikely that a lender will not check your credit at all. Some lenders are flexible, though, and if you can make a case for your ability to pay back the loan, you may be able to get the financing you need.
Other Considerations for Business Owners
Your equipment is just a part of the big picture for business owners.
As you make your financial plans and determine how much you can afford to pay for your loan, you need to keep your other expenses in mind.
You may need to lease or buy a space for your business, for example. The space needs to be able to accommodate your employees, your customer, and your storage needs.
You will also need to maintain the equipment you purchase. This may include purchasing a warranty or paying for a professional to maintain and repair your equipment.
You will need to purchase inventory. A restaurant, for example, will need to keep enough fresh food flowing in to feed their customers every night.
Business insurance is another important financial consideration. If there’s an accident or something happens to your property, insurance will help cover the costs.
There are also taxes that need to be paid. Accountants can help you sort out the right way to incorporate your business to minimize your taxes. They can also help you determine the best financing options for your needs.
Find the Financing You Need
Although no credit check equipment financing may not be possible, there are other options available.
At Bonsai Finance, we can help you find lenders who do soft credit checks. Once you complete our secure form, lenders will analyze your situation.
Once you have an idea of your loan possibilities, you can decide which loan option will work best for you.
If your request is approved, you will be able to purchase the equipment you need to get your business up and running. Depending on the lender, they may be able to provide the money quickly so you can get started.
Don’t wait to pursue your dreams. Contact us today for help getting the equipment you need.