1. How do I know if financing or leasing is the best option for my equipment needs?
Ultimately, it depends on the asset and your upfront capital. If your company seeks a piece of equipment that is predicted to not change in 2-10 years and/or has the funds to purchase the full asset, using cash is a viable option.
However, this is not the case for most businesses due to lack of upfront capital or wanting to own the latest technology and up-to-date equipment in their industry. Click here to read our previous blog post about determining if financing is the best option for your company.
A couple questions to consider before entering into a financing or lease agreement:
How much can you afford to budget for monthly payments on equipment?
How long do you plan on using the equipment for in your business?
Does the equipment in your industry constantly change and need to be updated every “x” years? Or can it become obsolete?
2. How important is it for your equipment financing company to know your company’s industry?
Very important. When your equipment financing company has knowledge about your industry, they have the capacity to understand market fluctuations, and adjust financing terms that are better suited for your unique company.
As a business owner, you should have the piece of mind that your financier has the experience and know-how to help you make smart decisions. That’s why at American Capital Group we take pride delivering unique financing solutions in helping business owners of all industries for over 23 years, and our A+ rating by the BBB credit bureau.
3. What are the common approval requirements?
Depending on where you get your approval from, there are a number of criteria to be considered. Generally, the basic requirements include:
Form of I.D.
Business-filing in state or county
No major liens or bankruptcies in business
Business bank account
At American Capital Group, our approval method is simple, fast, and easy. In 2 minutes or less, you can fill out your basic information on our private secured web page here, and where we will evaluate and respond back within hours. Unlike most institutions who will do a hard-pull inquiry that affects your credit, ACG does soft-pull inquiries, meaning that doing business with us will not affect your personal credit.
4. What is a typical credit standing that is approved?
According to Experian, a good credit score generally ranges around 650-750. However, due to being either a young business or having a poor credit standing, it may be more difficult to receive an approval for a loan from your bank or broker.
From startups to businesses that have been around for decades, American Capital Group, as a direct lender, has the flexibility to evaluate your company’s financial situation and accept a variety of credit standings.
5. Is there any flexibility in the financing/ payment terms?
In the industry generally, payment plans can range from 2-5 years in length. Compared to a loan, leases generally will offer more flexibility for the lessee, depending on how it is structured. At American Capital Group, we provide our 90-Day Deferral Program, which allows you to start making money off your equipment for the first 3 months before making your first full payment.
Do you own a seasonal business? American Capital Group can structure deals that fit your schedule by allowing flexible financing payments that reflect your company’s cash flow. Whatever financing structure you choose, we will provide our Lowest Payment, Guaranteed, that ensures you are getting the best deal on your monthly payment in the market.
6. What is the process of adding and/or upgrading equipment under my current financing plan?
When securing an equipment leasing contract, think to yourself, is there a possibility that I will need to update or add equipment during this period?
If you answered either yes or no to this question, make sure the length of your terms reflects accordingly. Select a shorter term when there is potential that the equipment will need to be replaced with a newer or updated model. If you know you will need additional equipment during your current agreement, work with an equipment financing company who has programs to support multiple agreements.
When you are working with American Capital Group, it means that your business has the opportunity to be considered as one of our preferred customers. This means that your next approval is not only quicker and easier to secure, but you can also even receive more favorable payment terms.
7. Once the lease is over, what are my options?
Moving forward, you can choose to do either of the following:
Return the piece of equipment financed.
Execute your purchase option.
Extend your current lease.
Determine which option is best for you by evaluating your company’s current and future standing. First and foremost, evaluate how well the piece of equipment performed in reaching your company’s objectives. If owning that equipment help your business increase profits, you probably want to continue to utilize that asset. Do some research to find out if this equipment is going to change in the following years before renewing your current lease, so your company can continue to utilize innovative technology.
Remember, in order to make money, you must spend money. This is the reason why most business owners make the investment in the equipment they need to maximize their company’s productivity, which ultimately increases profitability.
At American Capital Group, we can ensure you that you are getting the best monthly payment for your equipment need with out Lowest Payment, Guaranteed promise. If we cannot match or beat, we will pay up to $2,000*.
Let us help fulfill your equipment needs, so you can focus on growing your business.
Click Here to discover how ACG will provide your business with the best equipment financing in the market.