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How to Get Approved for Equipment Financing with Bad Credit

  • The Concierge
  • Feb 25
  • 3 min read

If you’ve got bad credit, applying for equipment financing can feel intimidating. But here’s the good news: bad credit doesn’t mean no credit. Many lenders understand that businesses face challenges and offer solutions to help you secure the equipment you need. In this post, we’ll walk you through strategies for getting approved for equipment financing, even if your credit isn’t perfect.


Can You Get Equipment Financing with Bad Credit?


Yes, you can! While a low credit score can make the process more challenging, it doesn’t disqualify you from getting the financing you need. Lenders take various factors into account beyond just your credit score, such as your business’s cash flow, revenue, and the type of equipment you’re financing.


Tips for Getting Approved with Bad Credit


Here are practical steps to improve your chances of approval:

1. Work with the Right Lender

Not all lenders are willing to work with businesses that have bad credit. Look for lenders who specialize in equipment financing for businesses in challenging financial situations, like 1187 Lending.

Why it helps: Specialized lenders understand your circumstances and offer tailored solutions, such as flexible terms or lower credit requirements.


2. Provide a Larger Down Payment

Offering a larger down payment shows lenders that you’re committed and reduces their risk.

How to do it:

  • Save up extra cash to cover a higher percentage of the equipment cost upfront.

  • Use existing business assets to demonstrate financial stability.

  • We have lenders that will approve basically ANYONE with 30% deposit.


3. Show Strong Cash Flow

Lenders want to see that your business generates enough income to cover the loan payments.

What to prepare:

  • Provide detailed financial records, such as bank statements and income statements.

  • Highlight any consistent revenue streams, even if your credit score is low.

  • Ensure you have bank statements for the past 3 months showing sufficient cash flow for existing and future equipment.


4. Consider Used Equipment

Financing used equipment often costs less, which can make lenders more willing to approve your application.

Why it works: Lower equipment costs mean smaller loans, reducing the risk for the lender.


5. Find a Co-Signer

If possible, enlist a co-signer with a strong credit history to back your loan.

Why it helps: A co-signer provides additional assurance to the lender, increasing your chances of approval.


What Lenders Look for Beyond Credit Scores


Lenders take a holistic approach when evaluating your application. Here are some factors they consider:

  • Time in Business: Startups may face more scrutiny, but established businesses with bad credit often have a better chance.

  • Revenue: Consistent cash flow and strong revenue figures demonstrate your ability to repay the loan.

  • Collateral: The equipment you’re financing often serves as collateral, reducing the lender’s risk.


Why Choose 1187 Lending?


At 1187 Lending, we specialize in helping businesses secure equipment financing—even with bad credit. Here’s what makes us different:

  • Flexible Options: We offer tailored financing solutions to fit your business needs and budget.

  • Fast Approvals: Our streamlined process ensures you get answers quickly, so you can keep moving forward.

  • Industry Expertise: With years of experience, we understand the unique challenges businesses face and are here to help.


Ready to Get Started?


Don’t let bad credit hold your business back. Contact 1187 Lending today to explore your options and secure the equipment you need to grow your business. With the right approach and a trusted lender, your goals are within reach. APPLY NOW!


FAQs About Equipment Financing with Bad Credit

Q: What credit score is considered bad?A: Generally, a credit score below 600 is considered bad, but many lenders work with businesses below this threshold.

Q: How long does the approval process take?A: At 1187 Lending, approvals can take as little as 24-48 hours, even for businesses with bad credit.

Q: Can I improve my chances of approval over time?A: Yes! Building a positive payment history through smaller loans or saving for a down payment can boost your approval chances in the future.

Don’t wait to get the equipment your business needs. Reach out to 1187 Lending today and take the first step toward a brighter future!


 
 
 

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