For the fifth consecutive year, the numbers prove that businesses are spending more on equipment, and screen printing is no exception. According to a survey conducted by the Equipment Leasing and Finance Association, 2014 brought a 6.7% increase in new business for the equipment financing industry. Businesses and financing companies are working together, and it’s your turn to join in.
Your equipment is an integral part of your business, but keeping it updated and expanding your stock is expensive. That’s where financing comes in. Equipment financing companies work with you to make your business goals easier to obtain.
The first step in creating a great and lasting relationship with your equipment financing company is making sure you are eligible for financing.
For your screen printing business to qualify for a screen printing equipment loan, you will most likely need:
A Good Credit History
A clean credit history is ideal when applying for an equipment loan. A good track record helps to show that the business is as a good credit risk. Late payments may work against you when trying to get an equipment loan. A history of defaulting on loans will also be detrimental. Try to clean up your credit history and report any errors to be fixed.
But if your credit isn’t perfect, don’t panic. Some equipment financing companies will work around less than stellar credit.
A Solid Business Plan
A realistic and well laid out business plan helps lenders see that you take your business seriously and plan to succeed. If your screen printing business offers a detailed account of previous cash flow and predicted cash flow, lenders are sure to be impressed. Being able to show lenders how you plan to expand will be an advantage. Financing companies want to see how the investment will pay off in the long run. Including information on your target market also helps lenders get a better understanding of your business and the industry.
Cash Flow Statements
Being able to show how your money comes and goes is crucial. Having cash flow statements will put your business in a better position to show its profit margin. Lenders will be more inclined to trust you if your statements are in good shape. The statements make the review process easier and faster, so you’ll have an answer and financing sooner.
If possible, look into working with a certified accountant. They will be able to organize your finances and ensure your records are in order.
An Updated Personal Resume
This one might be a bit surprising, but a personal resume helps lenders get an idea of your background and how your career has progressed. While the other documents give lenders an idea of your business’s financial footing, the personal resume allows them to see a glimpse of your character. Lenders tend to be more inclined to approve your loan if they are able to get to know you a bit.
The loan process intimidates many business owners and discourages them from expanding. Don’t let that happen to you. With these tips, qualifying for an equipment loan becomes straightforward and manageable, especially when working with a great equipment financing company.