Crest Capital Review

By Simone Johnson,
business.com writer
| Updated
Jun 09, 2020
Image Credit: Dutko / Getty Images
 

Crest Capital provides flexible equipment financing options for small businesses looking to buy or lease equipment, and funding ranges from $5,000 to over $500,000. While Crest Capital only provides equipment financing, businesses that partner with Crest can choose from six different loan types with no additional fees. For these reasons, Crest Capital earns our pick as the best equipment financier of 2020.

Crest Capital

Crest Capital

The Best Business Loan and Financing Options of 2020

The Verdict

Crest Capital's flexible loan terms, lack of additional fees and excellent customer service make it our pick for best equipment financier in 2020.

 

To view all our recommendations for small business financing, visit our best picks page.

Pricing: Rates and Terms

Because Crest is an equipment financier, the terms and rates depend largely on your specific loan situation. The first thing to keep in mind is that pricing and terms change when you borrow more than $250,000. This amount is a benchmark to separate quick loans from larger, more complex loans. For example, you only have to submit a simple online application to get financing under $250,000.

Based on the amount you are looking for, terms range from 24 to 84 months. Individual rates vary widely by the equipment or vehicle and your business's financial history.

Crest allows you to choose between equipment loans and leases. The difference between the two has to do with the structure of the agreement and whether you end up owning the vehicle at the end of the term. There are several different types of agreement:

  • Equipment finance agreement: This is a fixed-rate loan with a monthly payment structure. You pay off principal and interest each month, and then own the equipment at the end of the term.

  • Guaranteed purchase agreement: This payment structure gives you the opportunity to purchase the equipment for a fixed, guaranteed purchase price at the end of the term. This gives you the flexibility to pay a little each month and then spend a certain amount at the end of the term to own the equipment.

  • $1 purchase agreement: This lease agreement includes a fixed monthly payment and the ability to own the equipment at the end of the term for a nominal amount, such as $1.

  • First Amendment lease: This lease has defined purchase times throughout the lease. Should you decide not to purchase it at one of the predefined times, you have to renew the lease. There are some other aspects and stipulations to this agreement, which you can learn about here.

  • 10% purchase: This agreement involves a fixed monthly fee and a purchase option at the end of the term for 10% of the equipment's original cost. If you don't want to purchase the equipment for 10%, you can renew the lease or return the equipment to Crest. There's also an option to upgrade equipment.

  • Fair market value: This option has the lowest fixed monthly payment of any of the plans. At the end of the lease, you can purchase the equipment at fair market value, renew the lease or return the equipment to Crest.

  • Operating lease: This lease is available for equipment with a strong aftermarket value and meets the criteria established by the Financial Accounting Standards Board.

In addition to the many different agreement structures, Crest provides some other helpful plan and pricing features. The master agreement, for example, can function as a line of credit for future equipment purchases. Step-up plans allow you to schedule lower payments earlier on in the term agreement. A seasonal plan is an option where seasonal businesses don't have to pay during slow months. Deferred plans allow you to defer any payment for up to six months after the agreement is signed.

Should you decide to pay the full amount of the loan upfront, there are no prepayment penalties. In fact, you may qualify for a discount on the remaining interest. All these different plans and agreement structures makes Crest one of the most flexible alternative lenders we reviewed.

Crest Capital Features

The overall loan process may take a bit longer than it would with some other lenders we reviewed, but Crest Capital provides larger funding amounts than some of those companies. Crest wants to ensure that your business qualifies for and can pay back the loan it will issue.

Loan Process

You can complete an application with Crest Capital online, over the phone, or by printing it out and faxing it to the company. The company won't ask for financial statements unless you request over $250,000, but make sure you have your business name, website, address, phone number, email, Social Security number, bank name, account number and bank phone number on hand. You'll also have to provide information on the equipment seller you're partnering with, including the name, phone number, estimated cost of equipment and the equipment's condition.

Terms

Depending on how much money you ask for, your term will be 24 to 84 months. This is a fairly wide range – with some lenders, you'll only find short-term or long-term options.

Qualifications

To qualify for a loan with Crest, you must have been in business for two years and have a credit score of at least 650. You can't have any delinquent payments or a history of nonpayment to other lenders. You'll have to provide a written overview of your organization, a description of the equipment's purpose, your last two year-end financial statements, tax returns for the last two years, current financial statements, and a list of your current loans or leases. Crest will conduct a soft credit inquiry, so your credit score won't be affected by applying for a loan with the company. This is a lot of documentation and requirements compared to some competitors, but it verifies Crest as a legitimate, reputable alternative lending company.

Collateral

Crest's loans are secured by the equipment, vehicles or software being financed. No other collateral is necessary.

Time Until Deposit

After you submit your application, you'll receive a decision within hours. After you've been approved, you can complete the deal within a few days. Having all your documentation ready can speed up the process.

Special Documentation

Crest requires more documentation than any lender we reviewed. For loans over $250,000, the company wants to look at your financial statements, your tax returns, a list of your loans and leases, a written overview of your business, and a description of how you'll use the equipment.

These may seem like strict qualifications, but it shows that Crest is a reputable company looking to provide loans to businesses that meet high standards. By providing this information, you can partner with a company that has some of the most flexible loan agreement terms and plans of any lender we reviewed. The level of documentation you need to provide will vary by loan size.

Crest Capital Pros

Crest provides businesses of all types with quick and easy funding options. It has reasonable loan qualifications and can work with your company to make sure you get the funding you need. There are several different types of agreements to choose from, like the 10% purchase option and the $1 purchase agreement. This wide variety of loan types separates Crest Capital from competitors.

Crest is a good alternative financier for investing in new construction equipment, vehicles or business software. It has a quick application and approval process.

Crest Capital Cons

One drawback we found in Crest's service is the amount of documentation it requires, though this will depend on the amount you apply for. Many lenders only require some simple financial data. This is a minor downside when you consider the flexibility that Crest provides in its agreements, though.

Crest also has very high requirements for credit score – at least 700 – and time in business. These standards mean it doesn't work with startup companies.

Reputation and Customer Service

Crest Capital is a reputable company that was established almost 30 years ago. It works mainly with small businesses that have 5-75 employees, and it has a good online reputation. As of May 2020, it had an A+ with the Better Business Bureau and 5 out of 5 stars in customer ratings. Crest is one of the only companies in our review with this high of a rating on the BBB site. It has over 70 positive reviews, with no negative reviews or complaints. Other review websites reflect this level of customer satisfaction.

When we called Crest sales agents, they provided us with all the information we needed. The representatives we spoke to were friendly and concise. They took the time to understand what our company needed and gave us several options. They let us ask all the questions we wanted, were extremely patient, and didn't push us to provide information on our business or sign up for the service. After the call, the representative followed up with us by emailing us a company brochure. This level of attention was nearly unmatched in our review process.

 

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Crest Capital

Crest Capital

The Best Business Loan and Financing Options of 2020

The Verdict

Crest Capital's flexible loan terms, lack of additional fees and excellent customer service make it our pick for best equipment financier in 2020.

Simone R. Johnson was born and raised in New York City. She graduated from the University of Rochester in 2017 with a dual degree in English language media and communications and film media production. She has been a reporter for several New York publications prior to joining Business News Daily and business.com as a full-time staff writer. When she isn't writing, she enjoys community enrichment projects that serve disadvantaged groups and rereading her favorite novels.