What Is Collateral Bad Credit Equipment Financing:
Collateral financing is also known as asset based lending. If you have bad credit or damaged credit then most lenders will not lend you money because of your past payment problems or current credit report problem areas. Thus, all credit based lenders are basically off the table for you if you have damaged credit or bad credit. This leaves what is known as asset based lending or our c-credit program. Asset based lenders are more interested in the collateral you will be putting up rather than your past credit history. This type of financing is generally the most expensive but can serve as a starter loan with early payoff options.
If you have good collateral which is normally equipment that you own that has a $10,000 dollar or higher auction value and is under 10 years old then many times you can obtain the equipment you need. We also accept other kinds of collateral such as bonds, equity in real estate, cash, etc.
How Does Asset / Collateral Financing Work?
To obtain asset based or collateral equipment financing you will pledge not only the equipment you are buying but also additional collateral that you own to ensure that the lender will be made whole should the lease or loan not be paid when these items sell at auction. To begin the process we will first obtain a credit report to ensure that you do not qualify for credit based equipment financing. We will then review the collateral list that you submitted to see if we can use any of the listed items to get the deal done.
Items Needed For Approval:
3 Months Bank Statements
Listing Of Collateral (Click Here)
Homeownership for guarantors preferred as it shows us stability (not typically used as collateral)
Asset or Collateral Equipment Financing is typically best suited to companies looking to get equipment that they know will make a strong profit but have bad credit. This profit can pay for the higher payment and allow the company to pay off the equipment early to avoid a lot of the interest. Payment example:
|Example: Payments for a $10,000 request (example only payment. subject to change in underwriting):|
|660+ Credit||620-660 Credit||Below 620 Credit|
|Early Payoff After:||18 Months||12 Months||9 Months|
If your credit is damaged or you know that you have bad credit and need equipment financing then many times we can arrange the financing if you can pledge additional collateral. Collateral for equipment financing can be:
Certificates Of Deposits
Equity In Real Estate
2.5 : 1 Ratio Required