There are many equipment finance companies operating these days. This may seem like good news for business owners. But how do you find the right one for your requirements from the crowd of so many lenders? When it comes to your business, every decision you take regarding it can impact it positively or negatively.

So, consider these tips to find the right equipment finance company for your business.

Assess if they serve your industry.

Not every equipment finance company will serve every industry. Some may only fund equipment for the IT and tech industry; others may only deal in construction equipment loans.

Very few equipment finance companies will offer loans for different industries such as construction, medical, IT, restaurants, manufacturing, etc. You may require trucks for your food business. These trucks may differ from those required in the construction industry.

Also, not every lender will finance both used and new equipment. So, choose one accordingly.

So many factors go into every business, in every industry. So, it is best to apply for loans with equipment finance companies that specifically deal with your industry.

Review their experience.

Choose a company that has solid experience in financing equipment for your industry. Only a good company with robust experience will have a network of vendors in place to further simplify the lending process for the borrowers.

Look for a company with a national presence. But also see if they focus a great deal on their local businesses or not. You can know this by checking if they have special offers for their local businesses. A company with a countrywide presence is likely to have more extensive experience for different businesses and their equipment financing needs.

See how easy or difficult it is to apply for a loan with them.

Good equipment finance companies will ensure borrowers can get the funding they need without hassles. Check the websites of companies to know about their lending process. If it seems too lengthy or cumbersome; the lender may not be right for you.

Business owners, as it is, have a lot going on for them. There are issues after issues to sort out almost on a daily basis. If the financing is not easy, it impacts their business. So, as a business owner, always choose a lender that understands your concerns and makes the lending process easier.

The information about the application process must be presented clearly on a lender’s website. There is no point in going through the process and finding surprises later. It will be such a waste of your time. For instance, check if they support startups. Many equipment finance companies only lend to companies with at least two years of experience or more. But if you are a startup founder and need financing, choose a lender that states it clearly.

To give another example, most equipment finance companies only lend if you can you’re your previous financing history. Good lenders don’t get stuck on these details. If your business is credible, they will offer equipment financing to you.

Check if the company is trustworthy.

The lender has to be reliable. Look for equipment finance companies with a good reputation in the industry. A solid local presence; with a focus on helping the community, is always a sign of credibility. See if they offer special discounts for local customers or veterans.

Check if they are a licensed company. Do you see proper contact information about them on their websites? If you don’t find these details on the lenders’ websites, consider it a red flag.

Is it easy to reach out to them? Do they respond to you in a timely manner? Delays in responses is another red flag.

Initiate contact to check if a lender is right for you.

Identify 2-3 equipment finance companies that pass the test based on the above criteria. Contact them with your requirements.

See how quickly they respond to your inquiry. Assess how clearly and openly they answer your queries. Ask questions about the processing and additional fees if any. Ask them if they also charge an equipment inspection fee? Who will your point of contact? What happens if you miss out on a payment?

Use these tips to get the right funding.