Equipment tends to make all the difference in a business. With the correct tools, a company can drastically improve its products and processes. The Improvement often leads to an expansion in their consumer base and profitability. Unfortunately, not many businesses have the working capital available to purchase brand new equipment, despite the many advantages requiring Bobcat financing.
Bobcat equipment is the gold standard for many Industries. Due to its initial cost, many companies cannot afford such quality Bobcat equipment financing outright, meaning they require a lease or financing option. With Bobcat equipment financing bad credit and leasing options, companies can expect 24 to 72 months loan term limits, often making the purchase more affordable. Additionally, through leasing and financing, the company is still in control of its purchasing options, meaning they can buy out their lease at any time.
Equipment leasing might not seem like the best option for a company, especially one struggling with working capital or cash flows, but there are significant advantages. Some of the many benefits include:
- No Down payment
- Tax-free loan payments
- Tax-exempt leases for municipalities or other government entities
- Competitive fixed pricing and terms
- Customized loans or leases from $10,000 to 2 million dollars
Why Bobcat Equipment Financing is a Smart Decision
Most companies cannot afford to swap out their old equipment for brand new, meaning that they are running on borrowed time with tools that have an unpredictable remaining life expectancy. By utilizing flexible Bobcat equipment financing and leasing programs, your company can purchase state-of-the-art equipment and maintain cash flows, meaning little sacrifice for significant gain.
A typical Loan program will offer term limits of up to 72 months and interest rates starting at 3.25%. The payment options for these programs are often scheduled around the specific business and their needs, meaning if you can only afford to pay monthly, quarterly, annually, or any other timeline that suits you, the lender will likely be flexible. As these programs typically require no down payment, you can get brand new equipment with 100% financing, whether the machinery is new or used.
Additionally, while many businesses are used to waiting months for loan approval going through conventional institutions, a Bobcat equipment financing loan or lease through a private lender can typically be approved within 24 hours. The funding for these loans can take as little as two business days.
Getting Approval for Equipment Leasing or Bobcat Financing
Every loan program typically takes into account three considerations: investment value, credit history, business financials. By design, equipment financing is more focused on the value of the purchased equipment than the borrower’s credit history or business. The equipment stands as collateral for the loan, meaning that the equipment is repossessed if you default on payments. Therefore, credit history and business financials are not crucial to the process, making it more streamlined.
Bobcat Equipment Financing Benefits Over Other Options
Financing or leasing your equipment is not your only option. Many business owners choose to use credit cards, business loans, or cash. While there are pros and cons to every purchasing option, financing or leasing does offer the most benefit.
Purchasing your equipment with a business credit card often means paying interest along with other fees, meaning that you pay well over what the equipment is valued at by the time the card is paid down. Additionally, you tie up the credit line by using the company card, meaning that your company will not use that card for other purchases down the line.
While companies can use small start up business loans with bad credit, the terms and interest rates are often not as favorable as leasing or financing options. Additionally, most conventional loans require a downpayment, meaning that your working capital is tied up in your equipment investment.
While you can take money directly out of company savings, choosing to pay cash for the equipment, that is not the wisest decision. Using capital for an extravagant expense limits your ability to respond to economic downturns or other financial problems. Using a loan through an equipment financing program, you maintain your cash flow while securing the brand-new equipment.
It is not uncommon for industrial businesses to require equipment upgrades or updates. Unfortunately, such equipment is often in the tens of thousands of dollars and sometimes more. Most companies do not have that kind of money on hand, and if they do, they certainly don’t want to be spending it all on one piece of equipment. If you need Bobcat equipment financing, do not hesitate to contact First Capital Business Finance to discuss the funding and leasing programs.
Bobcat Financing Credit Score Requirements
When it comes to securing financing for your Bobcat equipment, understanding the credit score requirements is crucial. Bobcat, a renowned manufacturer of construction and landscaping machinery, offers financing options to assist businesses and individuals in acquiring their equipment. To qualify for Bobcat financing, a good credit score is typically required. While the specific score may vary depending on the lender and the financing program you choose, a credit score of around 650 or higher is generally considered a good starting point. A higher credit score not only increases your chances of approval but can also lead to more favorable terms and interest rates. Therefore, before applying for Bobcat financing, it’s wise to check your credit score, address any discrepancies, and work on improving it if necessary, to ensure a smoother financing process and more favorable terms. With that said, there are still options available for financing a bobcat skid steer with bad credit, that you might want to explore.
Get What You Need With Bobcat Equipment Financing and Leasing | First Capital Business Finance