Acquiring an equipment loan to help your business with funding your equipment needs can be a very profitable investment. However, for many small and mid-sized business owners, it can often be a very difficult transaction.
We’ll help you explore the opportunities, and risks, of acquiring new equipment financing for your business.
Getting Equipment Financing Through a Traditional Bank Loan
Because banks are often reluctant to approve loans to purchase equipment, getting a traditional bank loan for your equipment financing can be difficult. This is because the path to ROI can take several months, or even years (depending on the cost of the equipment).
Also, banks typically require collateral for business loans. This can create a hurdle for many small and medium sized businesses who may not have the right collateral for loan approval.
That said, bank rates are often more competitive than alternative lenders. If you feel confident in being able to meet their equipment loan requirements, this may be your best bet. However, their approval process can often take months, only to find out you will not be approved.
If you don’t feel confident that you will be approved for a bank loan, don’t worry – there are other options available for you.
Alternative Equipment Financing Options
Aside from a bank loan for your equipment financing, there are alternative lending options. At Mulligan Funding, we provide businesses across the country with working capital loans. You can use these loans to purchase new equipment, technology – or really, to assist with any other business needs you may have.
Benefits of a Working Capital Loan for your Equipment Financing
Here are some benefits of this alternative funding option to provide you with context on how a working capital loan can help with your equipment needs:
- We don’t require perfect credit. Bad credit or a past bankruptcy is not a deal breaker.
- We don’t require collateral for loan approval.
- Our application process is not excessively complicated. Ours is only 1-page and can be completed online in a matter of minutes.
- Our team does not take months to review an application. We take 48 hours or less.
- We don’t impose prepayment penalties for clients who pay their loan back early. And, we’ll never ask for a loan to be paid back ahead of time.
- We’re open to providing our clients with additional funds after they’ve paid off half of the initial loan amount. If approved, the new funding is not use to pay back outstanding amounts from the old funding. To our knowledge, we are the only company in the alternative lending marketplace with this “no double fees” policy.
- Our proposals show full transparency of costs and dates for payback. This way, you are informed about what you’re signing on to, and clear on the expectations for paying off your loan.
Once we approve a working capital application for your equipment financing, you can typically get the funds within days. We recognize that the only thing more valuable for your business than cash is time. Therefore, we do our best to help you make sure that your business is set up for success.
To see if a working capital loan could work for your business equipment financing needs, contact Mulligan Funding to speak with a loan advisor. Call us at 855-326-3564 or email us at info@MulliganFunding.com.
*The information shared is intended to be used for informational purposes only and you should independently research and verify.
Note: Prior to January 22, 2020, Mulligan Funding operated solely as a direct lender, originating all of its own loans and Merchant Cash Advance contracts. From that date onwards, the majority of funding offered by Mulligan Funding will be by Loans originated by FinWise Bank, a Utah-chartered Bank, pursuant to a Loan Program conducted jointly by Mulligan Funding and FinWise Bank.