Heavy equipment financing. Your restaurant is only as high quality as your hospitality equipment. Besides, even the best staff can’t compensate for old, ineffective equipment.
But such equipment is costly and paying cash to upgrade equipment will put your cash flow at risk. Fortunately, there are easy equipment financing options available for restaurants to obtain the hospitality equipment they need to be profitable.
How To Get Hospitality Heavy Equipment Financing
Generally speaking not all financial institutions offer hospitality equipment financing, so seeking financing beyond your existing bank is a smart idea.
There are designated business and equipment lenders that specialize in business loans to upgrade equipment. When you use a lender who specializes in hospitality equipment, you will have access to multiple financing options from which you may choose the best. A few of your options could be:
- Merchant Cash Advance
- Lines of credit
- Leasing & Equipment Financing Options
Financing the purchase of new hospitality equipment will keep your cash flow intact and allow you to make the changes your business needs.
How to Qualify for Hospitality Equipment Financing
At First Capital Business Finance, we offer a wide range of hospitality heavy equipment financing options to fit every credit profile and budget. Not all businesses need a large down payment or perfect credit score. Not to worry, after all financing plans are available for heavy hospitality equipment you need to run a flourishing business.
Gather some of this information to be ready for consideration:
- Down payment: Do you have a down payment? If so, how much?
- Credit score: What is your credit score? There are programs available that do not require a minimum credit score.
- Business history: How long have you been in business and what is your rate of profit?
- Trade Ins: Do you have existing equipment to sell or trade in?
Here are a few hospitality heavy equipment financing types to consider:
SBA Hospitality Equipment Loans
If you have already tried to finance with your traditional bank and are unhappy with the results, another option is to seek an SBA enhancement. SBA loans are similar to traditional loans with the main difference being that the Small Business Administration will cover a percentage of the SBA lender’s losses if your business defaults.
Fair Market Value Lease
A traditional lease agreement typically offers lower monthly payments than a buyout. Then fair market value leases provide some options when the term of the equipment lease ends. These options include renewing the lease, returning the equipment – or buying out hospitality equipment with a cash payout.
Dollar Buy-Out Lease
This hospitality equipment program allows you to “buy” your equipment for $1. If you know that you want to keep your equipment beyond the lease, this is a great option for you.
Consult with a company that specializes in large equipment purchases. If you plan to spend more than $100,000 on hospitality equipment at one time First Capital is the right choice. Rather than maxing out your line of credit with your local bank, consider alternative financing with us.
Can You Qualify for Hospitality Equipment Financing With Bad Credit?
If you are plagued with a less than perfect credit score, there are still options. “Corporate only” financing may be an option for your business if you have been in business for more than 5 years. Asset based direct lease programs are also viable options for business owners with low credit scores.
If you’re looking to upgrade your hospitality equipment, First Capital Business Finance is here to help. Contact us today to learn about our flexible lease and financing options or to apply for your loan now. Or if you prefer to speak to one of our advisors, they can help prequalify you with a quick 5 minute call. Call 888-939-1036.