Equipment Loan 101: How to Get Equipment Financing for Your Business

Business Funding - 2 Min Read

This blog was last updated on October 16, 2020.

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 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 may sometimes be reluctant to approve loans to purchase some types of equipment (for instance, equipment that is considered very old), getting a traditional bank loan for your equipment financing can be difficult. This is because the path to ROI can sometimes take several months, or even years (depending on the cost of the equipment).

Also, banks typically require collateral for equipment 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 sometimes take months, and at the end of the process, you may find out that you have not been 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

At Mulligan Funding, we provide businesses across the country with access to 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.
  • We strive to make sure our application process is not excessively complicated but instead is relatively fast and seamless.
  • Our team does not take months to review an application. We can have approval in as soon as a few hours with funding as soon as the business day after approval*.
  • 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 early, as long as the loan is in good standing.
  • We’re open to providing our clients with access to additional funds after they’ve paid off half of the initial loan amount1. If approved, the new funding is not used to pay back outstanding amounts from the old funding.
  • Our contracts 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 your working capital application is approved for your equipment financing, you can typically get funding as soon as the business day after approval*. 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 23, 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.