Before you apply for financing, you should know approximately what your monthly payment will be. Here's how to calculate it and what factors affect the number.
How It Works
| Feature | Details |
|---|---|
| Loan amounts | $10,000 to $500,000+ |
| Terms | 12-84 months depending on program |
| Rates | 5.49%-24.99% APR based on credit and collateral |
| Speed | Same day to 4 weeks depending on lender type |
| Collateral | Equipment serves as primary collateral |
Who Qualifies
The requirements vary by lender, but here's the general landscape:
Minimum requirements for most programs:
- 1+ year in business (startup programs exist with higher down payments)
- $75,000+ annual revenue
- 580+ credit score (some programs go lower)
- Valid business entity and bank account
- Equipment quote or invoice
What gets you the best terms:
- 700+ credit score
- 3+ years in business with consistent revenue
- 20%+ down payment
- Strong bank statements showing positive cash flow
- Clean business and personal credit history
Rates by Credit Profile
| Credit Score | Typical APR | Down Payment | Term Options |
|---|---|---|---|
| 720+ | 5.49%-7.99% | 10-15% | 36-72 months |
| 680-719 | 7.99%-11.99% | 15-20% | 36-60 months |
| 640-679 | 11.99%-16.99% | 20-25% | 24-60 months |
| 600-639 | 16.99%-22.99% | 25-30% | 24-48 months |
| Below 600 | Case by case | 30%+ | 12-36 months |
Pros and Cons
Advantages:
- Equipment serves as collateral (easier approval than unsecured loans)
- Fixed monthly payments make budgeting predictable
- Tax benefits through Section 179 and depreciation
- Build business credit with on-time payments
- Keep cash available for operations
Disadvantages:
- You're committed to payments for the full term
- Equipment may depreciate faster than you pay it off
- Personal guarantee usually required for small businesses
- Early payoff penalties on some programs
- Monthly payment reduces your available cash flow
How Brobas Makes It Easier
Instead of applying to lenders one at a time (each application is a credit inquiry), Brobas submits your application to multiple lenders simultaneously with a single credit pull. You get competing offers and choose the best one.
Our team has reviewed over 39,000 credit reports and works with 91+ lenders. We know which lender says yes to which profile, saving you time and protecting your credit score.
Apply at brobascap.com or call (773) 691-3925
Brobas Capital Partners is a commercial equipment financing broker. Not a direct lender. All financing subject to credit approval.