Equipment upgrades are a major ongoing cost for small businesses.
Nearly half (42 percent) of small business owners say they seek loan funding mainly to purchase equipment, as per a recent survey by small business online lending company Fundera.
If you are planning to lease or purchase new or used equipment for your business, a new online equipment financing marketplace EquipmentWallet promises to make it simpler for you to apply for equipment financing through a bid-and-quote process.
EquipmentWallet Aims to Simplify Small Business Equipment Financing
EquipmentWallet says its technology-driven platform connects small businesses seeking equipment financing and leasing with the best equipment finance companies suited to their needs.
“It’s like an equipment-financing auction where the best bid is selected,” said founder John Elliott in a release announcing launch of the company’s website. “This means that getting equipment financing is just as easy as comparing hotels or flights online.
Can EquipmentWallet Help You Meet Your Small Business Equipment Financing Needs?
There has been a downtrend in banks lending to small businesses. “Together, 10 of the largest banks issuing small loans to business lent $44.7 billion in 2014, down 38 percent from a peak of $72.5 billion in 2006,” reported The Wall Street Journal towards the end of 2015. In that time, non-bank lenders have seized the opportunity and captured 26 percent market share up from 10 percent.
As the number of non-bank lenders continues to increase, EquipmentWallet says small business owners encounter challenges when seeking equipment financing options. This is because every lending company has a different process for qualification and presenting quotes, resulting in many options for owners. A potential deal can thus turn into a complex process for those who want to comparison shop.
EquipmentWallet wants to solve this problem by streamlining the equipment financing process.
How Equipment Financing Company EquipmentWallet Works
A small business owner visits the online marketplace and fills a simple application form. The system generates a client profile from the online application form. EquipmentWallet matches the business owner’s profile with finance companies that are able to offer financing terms specific to the owner’s business.
Lending companies then compete to provide the most reasonable equipment financing options to you as the business owner by submitting their quotes for consideration. Quotes are emailed directly to your inbox. You simply select the best suited bid for your business and secure the financing.
“We take all these complexities and nuances and we simplify them into an easy-to-use marketplace where business owners and lenders connect on the same terms,” explained Elliott .
EquipmentWallet generates revenue by receiving 2 to 5 percent from the finance company as a marketing and origination fee once the deal is completed. There is no cost for small business owners to use the online equipment financing marketplace to connect with a lender.
“Using our site will help you find the best value for your business when it comes to equipment financing,” Elliott said.