Discovering the right equipment financing can be a game-changer for businesses looking to grow without straining their cash flow and business loan brokers offering their products to their clients. A recent article from CNBC highlights the best equipment financing options for 2024, offering valuable insights for companies navigating this crucial decision. While we have our list of top equipment finance companies, we wanted to explore their list and whether they are the best equipment financing options for business loan brokers.
Top Equipment Lenders
The CNBC article identifies five standout lenders in the equipment financing sector broken down into different types of businesses they may be best for:
National Funding is a top choice for businesses with fair credit, providing tailored solutions that cater to diverse financial situations.
OnDeck shines with its same-day funding capabilities, ideal for businesses that need quick access to capital.
Cardiff is recognized for its competitive offerings, making it a strong contender in the market.
Kapitus provides a range of financing options, ensuring that businesses can find a solution that suits their needs.
Crest Capital rounds out the list with unique solutions designed to meet various equipment financing demands.
Key Takeaways
The article emphasizes the importance of comparing different financing options before making a decision. Each lender has its strengths, and what works best for one business may not be ideal for another. Key factors such as credit score requirements, funding speed, and down payment options should be carefully evaluated to find the best fit.
Partner Channels for Loan Brokers
An intriguing aspect of these lenders is their partnership channels with business loan brokers. Many offer partner channels, enabling brokers to expand their product offerings and provide comprehensive solutions to their clients. For example, National Funding and OnDeck have established partner programs that leverage quick funding and flexible credit requirements, however, they may be difficult for new loan brokers to get signed on with given their requirements. Cardiff, Kapitus, and Crest Capital also likely offer similar opportunities, though specifics may vary.
These partner channels can be invaluable resources for loan brokers, providing access to a wider range of financing options and potentially increasing revenue streams. Brokers interested in equipment financing should consider reaching out to these lenders to explore partnership possibilities.
Their methodology
CNBC says the following for their methodology:
"To determine the best equipment financing options, CNBC Select analyzed a dozen U.S. small business loan lenders offering equipment financing options. For this roundup, we didn’t evaluate business lines of credit, invoice factoring/financing or merchant cash advances since they either have a long application process (like SBA loans) or act differently than a traditional term loan or equipment financing loan.
We compared each equipment financing option on a range of features, including:
Minimum and maximum loan amounts
Credit score needed
Application requirements
Streamlined application process
Fund disbursement
Customer support
Better Business Bureau rating
Customer reviews, when available
The rates and fee structures for equipment financing and small business loans are subject to change without notice, and they often fluctuate in accordance with the prime rate. However, once you accept your loan agreement, a fixed-rate APR will guarantee that the interest rate and monthly payment will remain consistent throughout the entire term of the loan. Your APR, monthly payment and loan amount depend on your credit history and creditworthiness."
Your Experience Matters
What has been your experience with the above-mentioned equipment financing lenders?
We invite you to share your thoughts in the comments below. Your insights could be beneficial to others navigating the complex world of equipment financing.
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