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The Basic Process To Apply For Equipment Financing

Feb 13, 2024
Posted by: Stearns Bank
Business owner reviewing equipment financing application

Have you ever heard the saying “failing to prepare means preparing to fail”?

Well, this is especially true when it comes to small business owners securing equipment financing. Sure, that shiny new machine promises a productivity boost. But without a solid plan in place, your funding could stall.

Don't let financial roadblocks hold you back. With some careful planning and expert guidance, you can access the financing you need to drive your business forward. 

In this blog, we'll break down the equipment financing process into 5 clear, bite-sized steps — helping you gather the essentials and navigate the path to approval with confidence. Get ready to equip your business for success, one step at a time!

Choose a Lender Focused on Your Needs

When seeking financing, don't settle for one-size-fits-all loans from faceless banks — you deserve a funding partner who truly understands your goals and fuels your unique journey.Small business owner and equipment finance lender in warehouse

Imagine this: A lender who speaks your industry's language, inside and out. They understand your essential tools and equipment, and how they unlock explosive growth. This expertise translates into flexible financing solutions that fit your business like a glove, propelling you toward growth.

The bottom line? The right funding partner helps you adapt, seize opportunities, and power your potential.

Gather Key Personal and Business Information

When seeking equipment financing, having vital information on hand speeds the process so you can stay focused on business.

Be prepared to provide: 

  • Personal details: Name, address, driver's license, and Social Security number.
  • Business essentials: Company name, address, tax ID, industry, years in operation.
  • Partnership power: If applicable, partner names and ownership stakes.
  • Equipment specs: Make, model, cost, age, and purpose (how it boosts your business).
  • Growth vision: How this equipment fuels your strategic goals.

Providing these details upfront doesn't just speed things up — it shows that you're prepared. Think of it as showcasing your business's winning potential to finance partners who can help you conquer your growth goals.

Provide Supporting Financial Documentation

Along with personal and business information, lenders may also require supporting financial data to complete an equipment financing application.Small business owner reviewing finances at her desk

Depending on the amount of financing needed, be prepared to provide:

  • Recent tax returns: These demonstrate your business's historical financial performance and provide valuable insights into long-term cash flow trends.
  • Balance sheets: This document offers a snapshot of your current financial position, detailing your assets, liabilities, and net worth.
  • Profit and loss statements: These statements provide a comprehensive overview of your revenue and expenses over a specific period, revealing your profitability and operational efficiency.
  • Bank statements: Up-to-date bank statements showcase your current cash flow and liquidity, helping lenders assess your ability to manage loan payments.
  • For larger financing amounts: For bigger equipment purchases, providing financial statements covering 2-3 years establishes a track record of financial stability and strengthens your application.

Compiling these materials streamlines the verification and decision-making process. It allows lenders to customize loan terms based on your unique situation.

Understand How Your Credit Score Factors In

Along with verifying business finances, lenders will review your personal credit history. This number reflects your borrowing history and plays a role in lending decisions. 

Don't worry, though — a bumpy credit road doesn't necessarily mean that you're out of the equipment game. Be prepared to share any bumps in your credit report story, with a focus on how you've dealt with them or are making strides towards improvement. Remember, lenders appreciate openness and proactive efforts to strengthen your financial standing.

Get Expert Guidance on Equipment Financing

Preparing thoroughly aids the equipment financing process. But you need an experienced lender to guide you toward solutions aligned with your operations.Stearns Bank equipment finance customer testimonial

That's where Stearns Bank comes in. Our financing experts personally assist every step of the way, providing:

  • Personalized expertise: Our dedicated team gets to know your business inside and out, crafting custom solutions that fit your unique needs and goals.
  • Instant answers: No automated menus or endless hold times. We’ll answer on the first ring with real people available to answer your questions and address your concerns right away.
  • Holistic approach: We go beyond the numbers. We understand your operations and cash flow cycles, tailoring financing that supports you through every season.
  • Flexible options: From streamlined payments to adaptable terms, we structure financing that fuels your growth without draining your resources.
  • Deep industry knowledge: We speak your language. Our understanding of your specific industry helps us build financing solutions that optimize your potential.

Don't settle for one-size-fits-all loans or faceless lenders. Partner with Stearns Bank and watch your business take off with the ideal equipment and the expert guidance you deserve.
Equipment Financing Help  Having trouble finding the right financing fit for a piece of equipment you  need for your business? Contact our experts to help you maintain cash flow and  find a payment schedule that makes sense for you. Contact Us About Equipment Financing