When Would Business Equipment Financing with Bad Credit Make Sense?
Some equipment financing ads say “financing is quick and easy”. However, nothing could be further from the truth.
If you are still reading this, then it is likely you badly need that piece of equipment for your business and want to work with a company which will treat you reasonably, instead of trying to deceive you into buying its financing product, just to pad its own bank accounts. That is how good companies deal with their customers, and you will also be treated the same fair and transparent way when you work with them on equipment financing.
That said, relatively high payments on business equipment when your credit is bad, are not a bad thing, as that is usually your only way to get the money, but those are sometimes a good option too.
There are questions to ask when deciding on this.
- Is there any better use of the funds for your business as compared to purchasing that equipment unit?
- How much cash will flow into your business from the equipment once you make the payments?
If your answers to the first and second question are a “no” and “enough” respectively, there is a good chance equipment financing may be the right option for you.