Consumer Loans for Small Business Office Equipment

Obtain consumer financing to upgrade your office equipment when you have no collateral
By Eisla Sebastian, Writer/Emergency & Disaster Management Consultant KTS Productions Consumer loans can be used to finance the upgrading or replacement of your office equipment. If you have few company or personal assets to offer as collateral, then consumer financing that offers no collateral loans are going to be your best option. No collateral loans, also referred to as unsecured consumer loans, are private personal loans that base qualifications on your credit history instead of on your net worth. 
 

When applying for consumer financing for your small business equipment purchases you will need to evaluate whether you want to apply for consumer loans using your business or personal credit. In order to qualify for unsecured consumer loans based on your business credit you will have to have an established business, excellent credit and a credit file listed with a reputable business credit rating company like D&B. If you don’t qualify for a business consumer loan, then you will need to apply for private personal loans. To qualify for a personal loan you will need an acceptable FICO score. 

Using consumer finance options to purchase small business equipment:  

1.  Determine how much money you need.
2.  Find a consumer lending company to work with.
3.  Apply for a loan.

Request your credit reports

To gauge your chances for obtaining approval from consumer lending companies you will need to evaluate your credit rating. To do this you will need to request your credit reports from the top three credit reporting agencies: TransUnion, Experian and Equifax. You will also want to request your FICO score. Each of these companies scores its credit reports differently so you will need to average your three FICO scores to determine you "actual" FICO score.
Try: Equifax, TransUnion and Experian all offer credit reports and FICO scores.

Determine how much money you need to borrow

Before you can apply for a consumer loan, you will need to know how much money to ask for. Lenders are going to look more favorably on applicants that have done their research and who have identified valuable deals on small business equipment.
Try: Office supply companies like Quill offer large order discounts and have a very liberal return policy. They carry office equipment like calculators, printers, fax machines and 3-in-one machines, as well as phone systems, headsets and other communication equipment. If you are interested in computers then you will find the best deals by visiting websites like Dell and Newegg. When comparing prices try to look for similar computer components. For reconditioned equipment consider sites like Overstock.com.

Select a lender, request quotes and fill out loan applications

Lenders now have their own websites where you can find all the information you need to understand your loan options, to request a loan quote and to access online applications.
Try: Bank of America offers both personal private loans and business loans. Citi Financial also offers consumer loans.

• Interest rates are not set in stone. They can, and should, be negotiated.
• Sometimes a business credit card will give you a better interest rate than a consumer loan. If you have a 0% APR credit card offer then you can eliminate your interest expense for between 6 months and 18 months.