In small businesses, having right equipment is vital for operational functions. You may lack the necessary funding for high quality equipment, but obtaining an “Equipment Loan“ could be detrimental to your successful business. This type of financing will help you acquire required equipment without dipping into your business’s cash flow. ShubhBank offer this loan with many benefits and on interesting rates online or offline. Many lenders such as traditional banks and NBFCs offer this loan but it’s good to evaluate each and every lender before submitting an application. We are here to make you understand that what steps you should take before applying an equipment loan to obtain a necessary piece of machinery for your operational unit.

1. Understand Your Current Financial Position: Before comparing the lenders, you should look upon basic things such as what is the need of equipment, how it impacts your revenues and profits. It helps you to understand your current financial position and helps you discussing the available loan options best suited to you.

2. Qualify the Criteria: While evaluating lenders, check out for eligibility criteria. It may vary from lender to lender, so make sure that you meet the basic pre-requisites. The common criteria include credit score, revenues and time in business. You will need a score of at least 500 to qualify a loan. Some lenders prefer score of 650 or higher and provide financing to businesses that have been established for certain number of years. You also have to prove that you are generating a specific amount of income. You should conduct a considerable research prior you “Apply For an Equipment Loan“. Some lenders may have additional eligibility checks than the ones mentioned above.

3. Decide a Down Payment: You have to make a down payment to qualify your loan application. Lenders want you to be vested in purchase so the down payment made by you makes them more confident that you are able to repay your loan. It will range from 5-10%. Before applying for a loan, you must improve your financial situation and make a check on eligibility criteria so that your loan application gets easily approved.

4. Research Different Loan Options: Now if you have figured out your current financial position and eligibility, you are off to a good start. Being smart, you should compare your loan options that give you more benefits. Don’t apply for multiple loans as it considered to be stacking lenders and it can hurt your personal or business credit score.

Equipment loan from ShubhBank is great financing option for every business owner due to its lower interest rate and quick disbursal time. You should consider the mentioned steps to avoid any financial disaster in near future. With this loan, you can use the purchases machinery as collateral similar to how home loan works and it can’t be used for any other expenses. If you are interesting in growing your business to the next level, just visit ShubhBank.com.