Having bad credit can present challenges when it comes to starting or expanding your business. To top it off, many of the big banks want businesses to have two or more years in business and sometimes more like 2-5 years in business or even more. Then come the credit score requirements, which can vary widely depending on the lender, the time in business, the type of equipment, etc.. If you’re in need of heavy equipment and have bad credit, don’t stress. There may be options when it comes to heavy equipment financing with bad credit.

We’ll take a look at a couple of the options that may allow you to finance or lease heavy equipment for your business.

Please contact us at Info@TheBroker.Finance for more info about heavy equipment financing with bad credit or at (714) 271-8524

Specific Credit Issues That Can Hinder Heavy Equipment Financing With Bad Credit

There are many credit related issues that can hinder your ability to acquire heavy equipment financing with bad credit. As an equipment leasing broker we do have access to many lenders, banks, leasing lenders, and private money financiers. One of the things we love to do is help those with bad credit get the equipment they need to start, expand, or improve small businesses.

With that said, we have a couple options that may be helpful for your business.

Here is an idea of some of the credit issues we can work when it comes to financing heavy equipment with bad credit:

  • Presence of Tax liens
  • Bankruptcy (recent, but does need to be dismissed or discharged, but can be as recently discharged as last week).
  • Repo’s
  • Judgments
  • Private party sales are allowed
  • Too much revolving credit on credit report
  • Credit scores DO NOT matter for some programs
  • Start Up construction / contractor companies that use heavy equipment
  • Owner / Operators
  • Slow pay on other accounts

Please contact us at Info@TheBroker.Finance for more info about heavy equipment financing with bad credit or at (714) 271-8524

With Credit Issues Noted Above, How Can We Finance Your Heavy Equipment?

There are several ways we can help you get heavy equipment financing with bad credit. The first couple are with one specific lender. However, we do have a few lenders that have basically the same program, but slightly difference appetites.

  1. If you have any of the credit issues mentioned above (or several of them), you can get financing for your heavy equipment with a good sized down payment. In terms of the size of the down payment, it will depend on all the particulars. In other words, with this type of equipment financing, it’s not like home loans where FHA, USDA, VA, or Freddie Mac/Fannie Mae have a pretty concrete set of rules.

So, how much of a down payment is required? It ranges from 25% – 50% depending what the underwriter sees exactly.

2. If you don’t have that much of a cash down payment, you may be able to pledge secondary collateral. For example, if you’ve got a 2019 Cat 349FL Tracked Excavator that is free and clear you may be able to use that as secondary collateral. Let’s say that it’s determined the auction value is $200,000. Then you’d be able to finance another $200,000 in new (or new-used) heavy equipment). Basically, when the transaction is structured like this (using secondary collateral) the underwriter/lender is looking for a 2:1 ratio.

The beauty about financing like this is that ANYONE can get financed to finance heavy equipment. It’s all about the collateral, and not about any past credit struggles you may have had. There’s no time in business requirement either.

Please contact us at Info@TheBroker.Finance for more info about heavy equipment financing with bad credit or at (714) 271-8524

Other Ways of Financing Heavy Equipment with Bad Credit

There is another way for an existing business to finance heavy equipment with bad credit that does not require secondary collateral or a large 25-50% down payment. It’s called revenue based funding. This can potentially work for businesses that have been in business for 4-6 months or more. Basically, you may be able to get a cash advance based on 1-2 times the amount of your businesses monthly sales / revenue. Again, this finance option would not require any collateral, allows really low credit scores, and doesn’t have the normal 2-5 year time in business requirement like when you try to get a more traditional loan from a big bank.

For this option, we are an independent consultant for DAC. Apply online securely here –> DAC.

banner on blog post for the broker website about financing heavy equipment with bad credit that reads revenue based working capital with bad credit
https://businesscapital.biz

Please contact us at Info@TheBroker.Finance for more info about heavy equipment financing with bad credit or at (714) 271-8524

Heavy Equipment Financing with Bad Credit that’s Not SO Bad

Here’s an idea of an option that may work for you and your company if your credit isn’t as bad as some of the things mentioned above.

Tier III Credit Program Basic Guidelines (Slim)

  • 600 or below FICO score
  • Application only to $75,000
  • Term to 60 months
  • 2 years+ time in business.

TIER III” Credit Program is for transactions that fall outside the Tier I and II Programs, yet have a story behind them and are deals that“make sense”, but don’t have any REALLY bad credit issues.

Tier II Credit Program Basic Guidelines

This option requires a 600 FICO score, therefore it’s not really rigid compared to bank loans. Here are the basic guidelines at a glance:

  • No open liens, BK’s or judgements
  • 600+ fico
  • 2+ years time in business
  • terms to 72 months
  • application only up to $150,000

If you’re still reading and it sounds like you’re credit is better than some of these options we mentioned, we probably have plenty of lenders for you.

Please contact us at Info@TheBroker.Finance for more info about heavy equipment financing with bad credit or at (714) 271-8524

Leave a Comment

Your email address will not be published.