If you're a new business owner and you have already tip-toed into financing your first piece of equipment then you've probably already experienced how hard it can be to get your first commercial loan. Often times banks don't want to loan money to new businesses and some of those that do make it very challenging to get approved.
So you're probably wondering how someone would ever finance their first piece of equipment when most banks don’t want to give anyone their first loan… that leads us to the first reason!
REASON #1: IT'S EASIER TO GET A LOAN
It's common for banks to require copies of your bank statements or even tax returns when you apply for your first loan and it is just part of the process. The problem is that sometimes your bank statements or tax returns don't tell the whole story and that can get your loan declined. As an example, maybe you're in slow season going into your busy season and your bank statements don't look so great... This is where having past commercial credit history helps!
Established business owners with past commercial credit history often don't have to provide much information to get approved for new loans. Typically it's just a matter of filling out a simple one-page application and away you go!
Why? Because they have already proven their ability to repay their debts on time, so banks are more willing to loan them money again without requiring bank statements, tax returns or other financial information.
REASON #2: BETTER APPROVAL TERMS
This one is pretty straight-forward but I cannot stress enough how important it is.
Typically new business owners are required to have a 20% down payment (read more about first time buyers HERE) and usually pay a higher interest rate too. Don't worry this all starts to change pretty quickly after you start building commercial credit. You'll see your down payments and interest rates start to drop quickly!
So now that you know why you should start building your commercial credit, it's time to start doing something about it!
Luckily, getting your first loan doesn't have to be so challenging. The key is finding a partner who knows the equipment and industry your working in and who is familiar with new businesses or business owners who have never financed equipment before.
When you're ready: Call us at 509-888-1913 or Apply Online