The Best Equipment Financing Option Explained
Established in 2010, Credibly is a solid business loan company. Its central purpose is to better the speed, choice, cost and experience of its clientele. After a short time in business they ranked number 35 on the Inc. 500 list, launched numerous programs, and achieved an A+ BBB accreditation. They have funded more than $1 Billion to more than 19,000 businesses throughout America.
- Speedy funding
- A large range of financing plans
- Loan amounts of as much as $400,000
- Efficient pre-approval application
- No collateral required
- Transparent rates and fees
- Customizable plans for your business needs
- User-friendly website featuring a customer support bot
- Does not consider borrowers with bankruptcy or low credit scores
- Tough requirements
Credibly charges an origination fee of 2.5% of the total loan amount. They provide same day funding and their APR starts from just 1%. You can borrow amounts of up to as much as $400,000 and no borrowing fee will be incurred. However, you will need a credit score of at least 500, will need to prove at least 6 months in business, and a monthly income of $15,000. You don’t need to provide any collateral.
During its time in business Credibly has shown itself to be a trustworthy and reliable small to medium-sized business fund provider. It offers customizable options with transparent and low rates. Credibly is dedicated to assisting small businesses with their growth and expansion.
Fora Financial is a direct lender that provides small business loans and merchant cash advances via an online platform. The company is based in New York and was established in 2008. The company provides approval in as little as 24 hours, funding in just three days.
- 4.5 stars out of 5 from past and past customers reviewed on TrustPilot
- Early payoff discounts apply
- Funding in just 72 hours
- No information on their website about interest rates or factor fees
- The greatest loan term is 16 months, which could make monthly payments on larger amounts hard for small businesses
Fora Financial tailors every small business loan to meet the requirements of your business. Loan terms, amounts, and requirements may differ. It offers loan amounts of between $5,000 to $5,00,000 and loan terms of up to 16 months. However, you will need to prove you have been in business for at least 12 months, that you have a minimum of $15,000 in gross sales, and that you have no open bankruptcies or dismissed bankruptcies within the past year.
Fora Financial is a top option as they offer loan amounts up to $500,000 and no obligation, a free quest so you can discover how much you can loan for your small business within minutes.
Fundbox is an online lender that offers small business owners a line of credit. This provides them with the funding they require to develop and expand their startup business. Fundbox also currently provides a PPP loan funding program (Paycheck Protection Program).
- No paperwork
- Low beginning credit limit of $1,000
- You can get approval within minutes
- Grants approval to new businesses and accepts fair credit
- No credit limits over $150,000
- High total cost, in comparison to a bank line of credit
- Not transparent with regard to how pricing works
- Front-loaded fees
Fundbox does not charge interest on its line of credit, rather it charges a weekly fixed fee, which your business will have to pay on each withdrawal. You can receive an approximate figure of the minimum total cost of a withdrawal and minimum weekly payments by making use of a calculator on Fundbox’s website. Note that this is the minimum Fundbox charge for such terms.
Fundbox provides lines of credit with speedy funding, simple application, and flexible requirements. The total cost might be greater than a credit card, yet it is comparable to other products on the market. With easy repayment schedules and quick financing, Fundbox is a solid choice for your financing requirements.
Fundera is a loan marketplace that has partnered with some of the biggest industry names in order to provide some of the best rates and terms in the business.
- Low starting rates
- All applications welcome
- User information is kept private
- Excellent reputation
- Some loans may require a down payment
- A smaller pool of lenders than other marketplaces
Fundera offers the lowest starting rates on our list at just 4%, although it’s likely you’ll need excellent credit to access this. That being said, those with bad credit are welcome to apply to see what’s available and there’s no hard pull to your rating if you feel like pulling out at any time before signing.
Fundera has one of the best industry reputations for equipment financing and it’s relatively easy to qualify for one of their loans. It’s definitely worth checking Fundera out. Read full Fundera review.
Lendio is a business loan marketplace that has an impressive network of more than 300 partner lenders. This greatly increases your chances of finding a good deal on equipment financing.
- A huge network of 300 lenders
- Financing is available in all 50 states
- Lengthy repayment terms
- Low starting rates
- Strict eligibility criteria
- Only around 65% of applicants will be approved
Lendio has impressively long repayment terms of up to five years, which is rare for equipment financing. Plus, starting rates are a very respectable 7.5% and the flexible borrowing amounts mean businesses can cover small purchases right the way through to major expenditures.
While Lendio has some of the best rates and terms around, you’ll need to meet some tough eligibility criteria and only 65% of applicants will be approved. If you have good credit, though, this should be your first port of call. Read full Lendio review.
GoKapital is a relatively new alternative lender that puts flexibility and customer service at the forefront. Plus, no eligibility criteria are disclosed and the platform encourages all applications.
- Great range of interest rates
- All applications welcome
- Excellent customer service
- Dozens of industries covered
- Not all rates and terms are provided upfront
- You may be passed to a partner lender and not GoKapital directly
GoKapital allows borrowers to purchase equipment up to the value of $5 million and has generous five-year repayment plans. Interest rates are better than you’d find at traditional banks and funding can be in your account within three days.
GoKapital might not be as transparent as some providers on our list but it makes up for this with top-notch customer service and a solid all-around equipment financing package. Read full GoKapital review.
Kapitus caters to an incredibly wide range of industries and just about any major equipment purchase you can think of will be covered here. It’s a little tough to find detailed information on rates, but the platform has built up a strong reputation over the last couple of years.
- Good reputation
- A wide range of industries is covered
- 100% asset funding
- Fast approvals
- Interest rates aren’t disclosed until you apply
- Additional fees may be charged
Kapitus offers up to 100% financing on equipment loans, so the sky’s the limit in terms of what you’d like to purchase. Coupled with a simple application process and fast funding, you’re definitely on to a winner. However, keep an eye out for the strict eligibility criteria as only well-established businesses will be able to apply.
Kapitus is definitely worth a look, especially if you work in a niche industry and have struggled to get financing elsewhere. Read full Kapitus review.