If you run a business, some of your least favorite words might be something along the lines of “it needs to be upgraded.” No matter what “it” is, the thought of the price tag that is bound to be associated with that upgrade is bound to strike fear into the hearts of business owners everywhere. And no doubt, considering all of the other costs associated with managing your business. Even worse, if you’ve not had the best few years, or there have been circumstances out of your control and you’ve not got the best credit, those words are especially concerning. Luckily, you can still get equipment financing so that you can obtain whatever equipment it is that you need, be it to replace something broken or obsolete, or simply to upgrade your means and grow your business. 

The Basics

There are two main options by which you can obtain new equipment: a loan with which to purchase the equipment, or equipment leasing, by which you rent the equipment with the option to purchase at the end of the term. Leasing can be a good option if the equipment you’re looking to obtain frequently is rendered obsolete by new upgrades. Of course, this option does not include the benefits of owning the equipment outright.

Options for Overcoming Bad Credit

If you’ve determined purchase to be the best option for your business to obtain the equipment it needs, then having bad credit could make it more difficult to get approved for the loan. However, you shouldn’t lose hope. There are a few options that you can pursue in order to get the funds to make that purchase. 

Many of the standard ways to overcome bad credit apply when seeking to get approval for equipment financing with bad credit. If you can, getting someone else with better credit to serve as a cosigner is a good option. If your bad credit is from many years ago but your business has been strong since then, that could get you closer to approval, as could a significant down payment. Failing any of these three options, your best option is going to be offering another asset as collateral. Depending on what you’re looking to purchase, that equipment or possibly real estate may serve as collateral and be able to help you get approved. 

If your business depends on getting new equipment to increase your sales or efficiency, you can overcome bad credit and get approved for the equipment financing you need.