How to Obtain No Credit Check Equipment Financing
Secure adequate equipment financing for startups and growing companies with no credit is not a possibility. Traditional lenders may require meeting a severe set of eligibility criteria that many small business owners can’t fulfill and ultimately fail to obtain the loan.
While it’s difficult to get no credit check equipment loan for your small business, it’s not impossible. Today, there are more types of equipment financing options than ever before, and lenders are willing to work with business owners who have no or less than perfect credit.
Here are a few great options for securing an equipment loan without a credit check.
Collateralized Equipment Loans
Collateral is a tangible or intangible asset that a business owner pledges to a lender to secure a loan. Real estate, equipment, inventory, invoices are some of the most common assets used as security by the lenders.
With equipment financing, the purchased equipment with the borrowed amount specifically acts as collateral for the loan.
For example, you’re buying chairs for your restaurant with equipment financing. You’re given a lump sum of cash (typically amount to 80–90% of the value of chairs). You can use the chairs right away while paying off the loan in regular payments.
However, if you’ve missed one and more payments or default the loan, your lender can sell the chairs to recover the losses incurred by your missed payments.
This is how a collateralized equipment loan works and is what makes asset-based financing unique.
Options for Business Owners Who Have Limited Credit
As mentioned above, the value of your purchased equipment provides a security blanket for the lender. This means, your credit score is much less important when applying for equipment financing than it is when applying for a traditional bank loan.
In fact, if you have a less than perfect credit score, you can still qualify for equipment financing. These days there are a large number of lenders who are willing to work with bad credit small business owners. If you are one of them, it’s always a great idea to search for your options.
Search and compare a variety of equipment financing lenders and who knows you’ll find a lender who might be ready to work in your credit tier.
No Credit Check Equipment Financing Alternative: Smansha
If you’re looking to secure no credit check equipment financing, apply through Smansha funding marketplace to get the best loan as per your needs and budget. Smansha is an innovative and intuitive online funding marketplace that can help you find and compare a variety of online equipment financing offers from multiple lenders. These lenders don’t require a credit score to apply and qualify for a loan.
You can compare interest rates, fees, repayment terms, and more of each lender and choose one that best fits your current financial needs and budget. The loan application process is quite easy and fast. Once approved, you can secure 100% of your equipment values within a matter of hours.