You’ve decided your business needs equipment financing, and you want to apply. But what will that process look like, and what information and documentation will you need?
Here, we’ll explain the business loan application process and describe all the supporting information you’ll need to secure equipment financing for your business.
As you read this article, keep in mind that this guide is intended for those who want to come into the application process as prepared as possible. If at any point the process sounds confusing or overwhelming, or if you decide you just want to get the application moving and figure the rest out later, we can help!
When you work with Team Financial Group, you can get started with only a basic application consisting of your contact information and business name. We’ll use that information to get in touch with you. Then, we can provide personalized help and guidance through the entire application process.
Read on to learn about the steps you can expect during the equipment financing process.
Step 1: Choose a Lender Who Meets Your Business’ Needs
The first step in the process involves finding a lender or financing partner. Some business owners will go right to a bank during this step, not realizing they could work with a more specialized equipment financing partner who can offer significant advantages over a bank.
What if you could work with a lender who not only understands your business inside and out but also can offer more flexibility, personalization, and attention than a bank?
A specialized commercial equipment financing partner like Team Financial Group can guide you through the application and funding process, but that’s just the beginning for us. We build relationships with our clients and become their trusted partner, which is why many of our clients come back to us when they need additional financing — or even when they’re just looking for help and advice.
However, banks can still play an important role in financing a business. In fact, many of our clients come to us via referral from banks. Banks are especially useful for securing larger lines of capital for general use, like a business line of credit.
When evaluating potential lenders, consider all your available options and don’t overlook specialized equipment financing companies. With the right financing partner on your side, the entire financing process can become much easier.
RELATED ARTICLE: How to Choose the Right Commercial Lender for Your Business
Step 2: Gather Your Business and Financial Information
You might be surprised how simple the initial application for financing can be. Often, you can get the process started with a few basic details about your business and the financing you’re looking to secure.
Your application will typically need to include:
Legal business name
Your lender will use your legal business name to verify that the business is registered at the state or local level. In addition to your business’ name, your lender will probably require you to specify the legal structure of your business (such as an LLC, corporation, or sole proprietorship). You’ll also need to provide your state and federal employer identification number (EIN).
Contact information
Your lender will want to communicate with you throughout the application process, so you’ll need to provide the business address and mailing address for your company. You should also give them phone numbers and email addresses for key contacts such as owners, stakeholders, and high-level management.
Description and cost of the equipment
Your lender needs to understand what you’re trying to accomplish with your financing and which equipment or technology you plan to purchase. If you’ve already found a vendor and have a quote for your equipment, you should provide that document to your lender.
If you haven’t found a vendor yet or haven’t settled on the exact equipment you want to purchase, that’s okay. Instead of a quote, you can provide a description of the equipment you intend to buy. Try to describe the equipment in as much detail as you can, including:
- Type of equipment
- Make
- Model
- Age
- Mileage
- Hours of usage
Personal information for credit check
Your lender will typically need to check the personal credit of the business’ owners. To access credit histories and scores, your lender will need the following information for each owner of the business:
- Name
- Home address
- Social Security number
- Driver’s license (preferably a picture or copy of the license)
RELATED ARTICLE: 7 Tips for Purchasing New Equipment for Your Business
Step 3: Apply
Each lender’s application form is different. If you decide to work with Team Financial Group, we make the application process as easy as possible for you. You can get started with a simple online application you can fill out in under a minute. All you need to give us is your contact information and business name.
Once you’ve filled out the basic application form, you’ll receive an email with the option to download the full application. If you’ve gathered the information listed so far in this article, you can begin filling out the full application while our financing specialists get in touch with you.
However, if you don’t have all your information gathered yet or aren’t sure exactly what equipment or financing option you want, don’t worry. You can still start the application process now and we’ll guide you from there.
Step 4 (Maybe): Provide Additional Financial Information
For smaller financing amounts, your personal credit history could be all that your financing partner needs. But for larger or more complex financing applications, your financing partner might ask for additional information such as:
- Recent tax returns (past two years)
- Cash flow forecast
- Profit and loss (P&L) statements
- Recent business bank statements
- Business debt schedule
So, what amount defines a “smaller” or “larger” financing request? It depends on your financing partner. Team Financial Group can often deliver financing amounts between $5,000 and $75,000 based on a personal credit history. We tend to require additional financial documentation when the loan request or total exposure with a business reaches $100,000.
However, keep in mind that these amounts are generalizations, not rules set in stone. The requirement for more detailed financial statements can vary depending on the size, complexity, and nature of your business.
RELATED ARTICLE: How to Choose the Right Commercial Lender for Your Business
Ready to Get Started? Talk With Team Financial Group Today!
At Team Financial Group, we take a personal approach to every financing request. Our equipment financing specialists can help you get organized and gather the information to secure the financing you need. You can use our easy online application to start the financing process now and let us guide you from there.
If you have questions that you’d like to ask before you get started with an application, fill out our online contact form or give us a call at 616-735-2393. We’re here to help.
The content provided here is for informational purposes only. For financial advice, please contact our commercial financing experts.