When you are looking for financing for your small business you have probably had many questions or concerns. Sometimes you don’t have the opportunity to ask all of your questions. We wanted to make it easier for you by discussing 3 questions business owners want to know the answer to but might not ask the question.
Do I need collateral?
The collateral is the equipment that is being leased or financed. Whether it is a $10,000 medical equipment lease or a $1,000 restaurant equipment lease, the collateral will be the equipment.
If you have a different finance program through Direct Capital, like a working capital loan* then you do not need collateral.
Tip: Be sure to check with your lender when it comes to collateral.
What if I can’t make a payment?
Typically there is a few days grace period. Most lenders, including Direct Capital, try to work with borrowers IF they are proactively reaching out to us regarding some cash flow issues.
Tip: Make sure that if you are facing this problem to reach out to your lender and be honest about your situation.
How is the interest rate decided?
Unlike what many people may think, lenders do not get this number from thin air. This is a number that is based on many factors:
– Time in business
– Business credit
– Personal credit (if it is personally guaranteed)
– Equipment age (if it is an equipment lease)
– Term of financing
Tip: Understand your business credit and make sure it is up to date and accurate.
If you have a question that has not been addressed here please reach out to us by calling 866-777-0117.
*Working capital not available in the following states: AK, DE, ND, VT