Share what you know with millions of people
Focus is the best place to turn what you know into remarkable content
0
Bad credit equipment leasing?
I am starting a construction company and am wondering if there are any equipment leasing options for people with bad credit? Right now the business doesn't have any credit and mine is not good due to a divorce from a few years ago. Are there any lenders out there that are willing to take a chance with my company? Is there any way I can start building credit for my business so I don't have to use mine? Thanks.
Events
- Dos and Don'ts of Small Business Marketing May 29 @ 11 am PT
- Lead Nurturing 202: The Next Generation May 31 @ 11 am PT
- The Tricks to Paid Media June 6 @ 11 am PT
- Display Advertising for Brand Awareness June 20 @ 11 am PT
Related Activity
5 Answers
The only option that I am aware of is a leasing company that my company works with - Marlin Leasing. They have a section of their company that works specifically with high risk leasing scenarios. I am not completely sure how bad your credit is, nor do I know how high their expectations and rates are, but if you are interested in making a connection with them, I can do that for you.
And to be clear, I am not in any financial relationship with them. I work in a telecommunication company and we use them - along with other lenders - to procure leases for people so that we can sell phones. In this case, I would merely make a connection for the two of you and have no further involvement, benefit, or interest in the outcome.
Please let me know if I can help.
Scott
If you are looking for 100% credit, I doubt that anyone will lend to you for the acquisition of construction equipment. If you have the ability to take a significant equity stake in the equipment, say 20%, so that you have "skin in the game," you may find that leasing companies associated with the seller of the equipment may open up to you. Dealer financing is usually more costly than bank financing but I doubt that any bank would lend under these circumstances.
I am in the document management sphere ( document storage software, copiers, mail room equipment, etc...). Financing today, is the hardest part of the sale. Most leasing firms won't consider working with a start up firm at all, even with a personal guarantee. I also have clients who work with Marlin, but I personally have no experience with them. I suggest approaching some of the leasing firms to see if they are open to a discussion. The direct route will give you the quickest answers.
Hello Percy. So how has your search for startup financing come along in the past couple of months?
Marlin is great. Pawnee Leasing also funds startup equipment leasing requests up to $30k for business owners like you: http://www.pawneeleasing.com/. The company I work for has been funding startup equipment leasing requests since 1992, up to $100k: www.teamfundingsolutions.com.
At the end of the day, you have three options to acquire business-essential equipment as a startup:
1. Pay cash for the equipment (cheapest, and recommended if possible - there is a TON of used equipment on the market right now, which means prices are lower across the board).
2. Use a startup equipment leasing product from a firm like the ones mentioned in these posts (this option is expensive, but if you can make money over and above the lease payment and associated expenses, go for it).
3. Bring in an equity partner to your business to help purchase the equipment (this is the most expensive option you face, as you will sacrifice a portion of your company's profits going forward, and may give up some decision making power).
In regards to leasing forklifts, most forklift leasing will involved used forklifts, which have been operated by other people before you. The reason why this is done is because it can offer you a lower cost since you are not paying for a brand new piece of machinery, and this can benefit your company because forklift leasing involving brand new machinery can be significantly more costly. Choosing a used forklift to lease is not a bad idea at all, considering how cost effective it will be in the long run, but keep in mind that the more a forklift has been used, generally the more likely it will be to have maintenance costs come up in the future.
You can read more about leasing forklifts here: http://www.everythingforklifts.com/forklift-leasing.html
Answer This Question