Equipment Loans Tips For Business

We recommend Crest Capital as the best alternative lender for equipment loans. We chose Crest Capital from among dozens of alternative lenders. To understand how we selected our best picks, see our methodology and a comprehensive list of alternative lenders on our best picks page.

Why Crest Capital

Crest Capital has a simple application process, fast approvals, a variety of financing terms and excellent customer service. Here is a breakdown of why it’s our best pick.

Application and Approval Process

Crest Capital requires you to submit only a simple application when financing less than $250,000. No other financial documentation is needed.

You have the option of filling out an application online, or completing a paper version and faxing or emailing it in. Not all of the lenders we considered offered an online application.

We recommend Crest Capital as the best alternative lender for equipment loans. We chose Crest Capital from among dozens of alternative lenders. To understand how we selected our best picks, see our methodology and a comprehensive list of alternative lenders on our best picks page.

Why Crest Capital

Crest Capital has a simple application process, fast approvals, a variety of financing terms and excellent customer service. Here is a breakdown of why it’s our best pick.

Application and Approval Process

Crest Capital requires you to submit only a simple application when financing less than $250,000. No other financial documentation is needed.

You have the option of filling out an application online, or completing a paper version and faxing or emailing it in. Not all of the lenders we considered offered an online application.

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The application includes basic questions about you, your business and the equipment you want to finance. Some of the specific questions are:

  • Company name, website and address
  • Each company owner’s name and Social Security number
  • The percent of the company that belongs to each owner
  • The company’s bank name and account number
  • The estimated cost of the equipment
  • The length of the loan or lease you want
  • The condition of the equipment
  • Name and address of the equipment vendor

Crest Capital also reviews your credit history. In order to be approved, you must have a minimum credit score of 650. The lender also checks public records, like Dun & Bradstreet and PayNet, to ensure you don’t have any current delinquent payments or a history of nonpayment to creditors.

How long you have been in business is also a key factor in whether you’re approved for financing. Typically, you must have been in business at least two years for Crest Capital to consider you.

The lender reviews all of this information and usually has a final determination on approval within 4 hours. This is significantly faster than many of the other equipment financing lenders we examined.

Financing of more than $250,000 requires a more extensive application process. Besides checking your credit score and payment history, Crest Capital also requires:

  • A written overview of your organization (two pages max, plus brochures and/or resumes)
  • A written description of the purpose of the equipment and financial justification of acquiring the equipment
  • Last two year-end financial statements and current interim financial statement
  • Tax returns for the two most recent years (unless financial statements are audited or reviewed)
  • Last two years of tax returns on all entities and principals owning at least 20 percent of the company
  • Current financial statement on all entities or principals owning at least 20 percent of the business.
  • List of current loans and leases (include lender name, account number and phone number)

Once all of this information is submitted, an approval decision is usually made within one business day. This is still considerably faster than many of the other lenders we looked into, which took up to two weeks to approve borrowers.

Loan Terms

Part of what attracted us to Crest Capital was its wide array of financing terms. The company offers financing of up to $1,000,000, with term lengths of between 24 and 84 months. The wide range of options gives you the ability to choose a financing structure that best fits your needs.

We like that Crest Capital lets you choose your own term length. Shorter term-lengths generally require larger monthly payments, while longer term-lengths have smaller payments. The lender’s flexibility means you can pick a repayment period that best fits into your budget.

Crest Capital also lets you choose between an equipment loan or lease. The biggest difference between the two is the structure of the financing and what happens at the end of the term. Among the options offered are:

  • Equipment finance agreement: A fixed-rate loan offering a monthly payment that does not fluctuate with treasury rates. At the end of the term, you own the equipment.
  • $1 purchase agreement: With this lease, you have a fixed monthly payment, and own the equipment at the end of the lease for a nominal amount, such as $1.
  • 10 percent purchase option: This is a lease with a fixed monthly payment, as well as a fixed purchase option. At the end of the lease, you can purchase the equipment at 10 percent of its original cost, renew the lease or return the equipment to Crest Capital.
  • Fair market value: This offers the lowest fixed monthly payments. In addition, the payments are usually 100 percent tax deductible. At the end of the lease, you can purchase the equipment at fair market value, renew the lease or return the equipment to Crest Capital.
  • Guaranteed purchase agreement: Provides a guaranteed purchase price for the equipment at the end of the term. You can choose a purchase price that is fixed at a certain dollar amount, or pick from a range between a fixed minimum and maximum amount.
  • First-amendment lease: Gives you a purchase option at one or more defined points during the lease, with the requirement that you renew or continue the lease if the purchase option is not exercised.
  • Operating lease: Meets the criteria established by the Financial Accounting Standard Board and is available for equipment with a strong after-market value.