Maybe you need a new NEMCO 6600 steamer or three to replace your ancient countertop convection steamer. So, you think about securing a way to fund your new setup, but you are worried about finding restaurant equipment financing with bad credit. Even though you think that business loan options are only open to entrepreneurs who are in great or even just good credit score standing, one of the many great things about the ever-expanding lending industry is that alternatives of all kinds are opening up for small business owners. This includes ones with poor credit history.
So, you are not totally out of luck- in fact, you might be pretty pleased to realize that you have many options for restaurant equipment financing with bad credit. You just need to know where to look and maybe get a little creative in the loan application process. To do that, though, and make the best choice for your small restaurant, let us get back to the root of what exactly restaurant equipment financing is. Here is what you need to know.
NEMCO 6600 Overview
This powerful little unit could wind up being one of the most versatile tools in your commercial kitchen. Using super-hot steam-hotter than 212°F – the Super Shot reheats foods and restores their fresh-made flavor in a few seconds. Make day-old buns, bread, and baked goods taste like they just came from the oven. It is ridiculously simple to operate. Just plug it into a standard outlet, fill the reservoir with tap water then utilize the push button to deliver a pulse of wonderful steam.
NEMCO 6600 Countertop Steamer Features
- Constructed of aluminum and stainless steel components
- Illuminated on/off rocker switch indicates when the unit is activated
- Materials and design make cleaning a snap
- Uses half-size steam table pan
What Is Restaurant Equipment Financing?
Restaurant equipment financing is a loan you can take mainly for purchasing new equipment for your restaurant. Unlike many small business loans, restaurant equipment financing is collateralized- indicating that whatever you are purchasing with funds can be repossessed if you default. Loans for restaurant equipment can vary, but they are generally over about three to five years. And because the loan is collateralized, they are less risky for the lenders that offer them. That indicates they can generally offer a lower rate than standard term loans- usually interest rates between six-percent and twenty-percent.
The rate will, of course, be based on your profile for qualification. However, another type of neat thing that determines APR is how ‘resellable” the equipment is. So, for example, if the borrower defaults on a loan for a custom machine, its resale value is lower, driving APR higher. But a steamer has a much wider resale value, so that it could push APR lower. Restaurant equipment financing for your small business can be a good way to fund the cost of whatever you require to keep things running smoothly or to modernize. And the great news is that because these small business loans are automatically collateralized with the equipment purchase, they are typically simpler to be eligible for than traditional term financing.
How Do You Know If You Qualify For Countertop Convection Steamers Financing And Leasing?
Of course, there is no tried-and-true formula for qualification, but a good gauge for whether you will be eligible for a countertop convection steamer is:
- You have at least 600 on credit score
- You have been in business for eleven months or more
- Generate about $100,000+ in annual revenue
For some perspective, it might be useful to know that most Top Financial Resources customers who have been accepted for restaurant equipment financing have had a time in the business of about two years, generated $130,000 or more of revenue, and have a credit rating of 630 or so.
But even though you do not slot into these categories- mainly that last one- most restaurants can still qualify for some type of funding. It is because of that collateralization part, which indicates you can still possibly find equipment financing with a bad credit score. How much your restaurant qualifies for, though, and the interest rate you will pay on that loan, based on the value of the appliance, your business’s financial history, and your credit rating. In fact, equipment financing companies are looking at what is securing the loan just as much as they are at your business’s creditworthiness.
What Type Of Documentation Do You Need To Appy For NEMCO 6600 Financing?
Honestly, not many. And that is one of the things that makes applying for restaurant equipment financing easier than some other kinds of small business loans. And, unlike more document-intensive options for financing, such as SBA loans, for example, which have more stringent asks from borrowers, lesser requirements open the door to get equipment financing with bad credit. If you are exploring equipment financing, you will want to gather:
- A voided business check
- A quote for the equipment you are looking to fund
- Business tax returns
- Business bank statements
- Personal credit score
- Your driver’s license
The first one, of course, is, so lenders know where to deposit those funds after you are approved.
How To Make Your Business A Better Candidate For Countertop Convection Steamers Financing With Bad Credit?
If you are still worried about bad credit history impacting your ability to qualify for the equipment financing you need, you can strengthen your appeal to lenders with a few adjustments:
- Find a cosigner: If somebody with better credit will agree to cosign on your loan, lenders might be more inclined to offer you restaurant equipment financing and at a more desirable rate.
- Provide other assets as collateral: Do you have other alliances or real estate you could offer as collateral? Generally, the equipment you need to buy for the loan is utilized as collateral in case of a default; however, if you have a poor credit rating, providing more collateral might be the boost you require to get the funds you require.
- Make a big down payment: Provided you have sufficient cash on hand to knock out a good section of the total equipment cost, lowering the overall loan amount, you will have high chances with prospective lenders as a borrower with bad credit.
- Demonstrate a strong business: This is easier said than done, of course, but it is worth trying to prove to the equipment financing company that your business has been soaring lately. Can you show hugely growing revenue with a couple of bank statements? Lenders might be more forgiving of a bad credit rating with evidence that a restaurant is really booming.
Check Out Online Lenders For Restaurant Equipment Financing
Top Financial Resources can work with you and your business even if you have a bad credit rating. We understand that many situational factors can cause poor credit scores. If you have marks on your credit rating, we will assess the reasons why. If your restaurant has been operating for many years and can show that you have good relationships with a few vendors, it might be enough to overcome your bad credit and secure funds with us. We make judgment calls regularly and will try to see if we can work with you to provide you with restaurant equipment financing. Top Financial Financial is the leading provider of restaurant equipment financing for restaurant owners and businesses with bad credit. If you need restaurant equipment for your business operations, apply today to get the funding that you need.
A-Line Of Credit Could Work, Too
There are many other options available to bad credit borrowers, such as business lines of credit, short-term loans for challenged credit, and merchant cash advances. Your best option could be applying for a business line of credit. They are a great option for small businesses with a bad credit history that require financing for equipment. The qualifications are less stringent for a business line of credit- roughly about six months in business and $50,000 of revenue- which could open some options to newer businesses that require equipment help.
You can think of a business line of credit as a business credit card: a lender will extend a maximum credit amount from which you can draw cash, and this amount can be used to fund all or some of the appliance’s cost. The best part about business lines of credit is that you only pay back what you take from the credit line- as opposed to a lump sum loan. Note that interest rates on these might (and possibly will) be more than traditional restaurant equipment financing. However, if you need the cash, a business line of credit is still a good option to help pay for the partial or full cost of the restaurant equipment you need. And this kind of loan, too, can happen in a few days if you choose to apply for a business line of credit with alternative lenders.