By the time you apply for construction equipment financing, one thing is for certain — you have a need. Not only does your company have a specific equipment need, but there is also likely a time demand. For this reason, keeping the approval process as short as possible is important. Fortunately, there are several things you can do to help facilitate a faster process.
Research Lenders
There is a long list of construction equipment lenders for a very important reason; not every lender is for every business. Do yourself a favor and research lenders before you apply. For example, many lenders have specific business credit and cash flow requirements for their loan products. If your company does not meet this threshold and you apply anyway, you may waste several days only to discover that you do not qualify.
Gather Financial Records
The lender is largely concerned with your ability to repay the funds, so it should come as no surprise that they will request your financial records. A profit and loss statement, cash flow statement, and tax records are just some of the documents that may be requested. Go ahead and gather these documents ahead of time so that you are ready to send this information over right away.
Set Aside Funds
Unlike personal loans, such as for a vehicle, 100% financing is less common. Unless your business has a long, good standing credit history and ample cash flow, you may have to pay a portion of the equipment cost in the form of a down payment. How much you need depends on your business's track record and the value of the equipment. However, a lender can typically provide you with an estimate during a pre-qualification appointment before you actually apply.
Request an Invoice
In addition to your ability to pay, the lender also wants to ensure the cost of the construction equipment is fair and accurate. For this reason, you will typically be required to submit an invoice to the lender for review in order for the application to move forward. The longer it takes for them to get the invoice, the longer the process. You should be able to collect this information from the retailer before you apply for the loan.
Keep these tips in mind and speak with a financing professional to ask specific questions about how you can ensure the approval process is able to move forward on schedule.
For more information, contact a construction equipment financing service.
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