When it comes to financing your bin cleaning equipment you’ll want to find the most cost effective way to finance the equipment you need. Your decision will depend on your equipment needs, your budget and the state of your personal finances. The two-financing options we’re going to cover will be 1. Personal Loans 2. Equipment Financing.
Personal Loans: When you’re just starting your bin cleaning business, and looking for the best interest rates ,a personal loan will typically provide the best rates.
If you have good credit, generally a credit score of 690 to 719, you’ll find favorable interest rates on most personal loans that don’t require collateral. If you have a great credit score, 720 and above, your interest rate will be even better. If you have good credit, you should shop around at online lenders, and your local bank or credit union to get the best combination of low rates, fees and payment flexibility. Most lenders will let you check the rates you could get without affecting your credit (that’s called a soft check), so it’s worth taking some time to compare offers and get yourself the best possible rate.
A good place to start looking for the best rates online is at Lending Club.
Getting a personal loan with bad credit
A bad credit score, one that’s below 630, won’t keep you from getting a personal loan. Some online lenders cater specifically to people with bad credit. These companies consider your credit score and history when deciding whether to loan you money, they also have more flexible requirements than banks do.
Personal loans from reputable online lenders can be good options for many borrowers with scores below 630, However I really recommend you visit your local credit union. Most credit unions offer lower interest rates than online lenders for people with bad credit. The maximum annual percentage rate at a federal credit union is 18%.
Equipment Financing: If you already have a business that has been established for at least 2 years, then equipment financing may be a good option for you. You can still work with an equipment financing company even if you don’t already have an established business however the rates will be higher and you’ll probably do better looking elsewhere.
There are plenty of reasons why you might want to consider an equipment loan instead of a traditional, general business loan from a bank.
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