Question 1

What Types of Financing Does North Star Offer?

Accepted Answer

We provide equipment finance loans and leases, including tax leases, operating leases, TRAC (Terminal Rental Adjustment Clause) leases, equipment finance leases and equipment finance agreements. Our equipment finance experts have industry-specific expertise so they can connect you with financing that's right for your business

Question 2

What Is an Equipment Loan?

Accepted Answer

Equipment loans cover the cost of large business assets like vehicles, medical devices, computers, furniture, and machines. You can use an equipment loan to buy new equipment or repair things you already own. However, you can’t usually buy commercial real estate or spend the money on operating costs.

These loans let you afford the equipment you need to start or grow your business. As you repay your loan, you’ll also build strong credit so you can get low-rate loans in the future. You may even be able to deduct the loan payments as an operating expense on your income tax return

Question 3

How Does Equipment Financing Work?

Accepted Answer

When you get an equipment loan, you make fixed monthly or weekly payments for the total of the purchase with interest and fees. The lender has a lien on the equipment you buy until you repay the loan. If you miss too many payments, the lien allows the lender to claim the equipment as collateral to cover the outstanding balance. Repaying the loan removes the lien as you take full ownership of the asset

Question 4

What Transaction Sizes Does North Star Finance?

Accepted Answer

Our typical range is anywhere between $50,000 to over $5,000,000. We have a versatile team with years of industry-specific experience to guide you to a flexible financing solution that fits your business needs.

Question 5

Who Can Get Approved for an Equipment Loan?

Accepted Answer

Since equipment loans are secured with a lien, they pose less risk for lenders than unsecured loans. This is good news as it means your business could qualify even if you have below-average credit. Approval criteria vary, but many lenders have these minimum requirements:

550 credit score, but you’ll need at least a 680 for the best rates
12 months in business
No history of bankruptcy

The lender will also consider whether the equipment will hold its value for the length of the loan. In other words, lenders will be less interested in financing an asset that will wear out or become obsolete before you finish paying for it.

Question 6

Equipment Financing Rates and Terms

Accepted Answer

Our commercial equipment finance rates depend on several factors including the term of the financing, product chosen, and credit quality. We work hard to provide our clients with tailored equipment finance rates that are competitive so they can focus on growing their business. Contact us today to talk to an expert for more information.

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