1. Equipment Lending Myths and Facts

2. In all businesses, there are so many things that need to be cleared up. Equipment lending is no different. Axis Capital Group Inc Business Funding, a direct lender providing quality equipment leasing/financing services from its main office in Nebraska to almost all states in America, is yet to unfold some of the facts behind myths in this industry.

3. 1. Contrary to what banks tell you, you do not have to put your money down to buy a commercial vehicle. Banks do need down payments when they finance homes and buildings so they can just carry that policy over to commercial vehicles but with legitimate vehicle financing companies, $0 down payment is needed.

4. 2. You don’t need to offer collateral when you loan. Most banks make it easy for themselves so they get some insurance from you. If you don’t have big cash for the down payment, a banker will often ask for additional collaterallike land title, pledging of your account receivables, buildings or even homes.

5. In the equipment financing companies, this is not a good policy. The equipment you are purchasing should be the collateral to support your loan. Some agents would also scam you into putting all you’ve got for the loan. Don’t get fooled into over-collateralizing your loans, just the equipment you are buying is enough collateral- nothing more.

6. 3. Rules differ depending on the place you are at. The government’s policy may affect terms with both banks and equipment lending companies. In most cities though, like Jakarta, Indonesia and Singapore as well as in Tokyo, Japan, some companies insist that you cannot get a 100% financing including tax, title and license (TTL).

7. Equipment lending should be able to make a partnership with you, not take advantage of you. Equipment lending isn’t 100 percent about avoiding risk; it’s about helping your business get the financing terms you need. So the next time your bankers tells you they can’t finance your TTL, just politely say thank you and keep looking for one that will.

8. 4. Contrary to another myth that says that you cannot get approved without providing tax returns or financial statements, it is not necessary to show your complete details to loan up.

9. Some agents or banks do not tell you this since they either need to protect themselves by having all of your information as leverage in case the worst is to happen or to carry out their fraudulent acts against you through the details that they have.