Funding is oftentimes a show stopper in terms of getting the latest and greatest workshop or hobby equipment to take your projects to the next level. Shelling out thousands on a piece of machinery can seem daunting, and maybe your cash reserve would be better saved than spent. In today’s world of business financing and loans, there are a lot of creative options that can get you quick access to the laser machine that you need.
Sometimes the options can be daunting, and it’s challenging to sift through all of the sales and marketing promotions you find on the internet or laser industry magazines. Which offers are the best, and which ones should you stay away from? Not to mention, your already trying to determine the best price on a laser machine.
We sifted through an extensive list of possible options and noted a few of the better solutions for creative financing of your next laser engraving machine.
Whether you are building a laser engraving, laser etching, or laser cutting business or just looking to add a laser machine to your arsenal of workshop tools, the cost of a laser pales in comparison to the potential return on investment.
Here is our list of financing options for your next laser engraving machine:
Lendio Financing Options
This company does not provide direct business lending, but instead acts as a small business loan “aggregator,” connecting you with more than 100 lending platforms through their free online portal where you can pick and choose potential lending offers based on your eligibility and capital needs.
You can choose to open a line of credit or take out a working capital loan, cash advance, equipment loan, or term loan. Being a sophisticated aggregator, Lendio provides many different offers to choose from. Lendio offers dedicated customer service reps to walk you through the application process. Interest rate can be as low as 4.5%, with 6% APR on the high end. No collateral is needed when applying. Speaking of laser machinery financing, take a look at this article from Lendio for more specific information on their lending process: https://www.lendio.com/business-loans/equipment-financing/
Kabbage Laser Financing
Kabbage acts as a direct to business lender with quick turnaround rates and simple online paperwork. If you need a laser machine right now, open a line of credit at Kabbage. It’s relatively easy to apply, and given sufficient business history and eligibility; it’s a much quicker option than the traditional business loan.
If your application is approved, you can withdraw your approved loan amount in as little as one hour. Just be aware that in exchange for the quick release of funds, you may be charged a high-interest rate if approved for laser engraver financing.
Additionally, consider getting the Kabbage card, which is free for businesses that open a line of credit. Having a card to access your funds will make purchasing your new laser machine a breeze.
Launched in 2005, Kiva is a nonprofit organization that funds small business loans from US-based entrepreneurs at 0% interest rate through a concept called micro-lending.
Kiva’s online application process cuts to the chase and gets right down to business. You need to complete at least three essay-type narratives (between 50-100 words) discussing your business plan, and once you click submit, your application undergoes a review by Kiva team members.
Several phone interviews will follow, but once approved, you can begin the crowdfunding process by inviting 5-30 personal friends or family members to contribute to your initial project fund.
Once you complete this requirement, the worldwide Kiva community of lenders can pick up and fund your loan if they see potential in your business plan. Loan amounts are limited to $10,000, but with 0% interest rate, it’s a darn good option.
Offering term loans and lines of credit, OnDeck does not ask for much paperwork during the application process; instead they streamline the online application process as the best in class online lender.
You can start your application by calling OnDeck’s number or visiting their online portal. Just like Kabbage, approval time can be quite quick and possibly within 24 hours. All they require is your Social Security number, sufficient bank statements, driver’s license, and a business tax ID. Loan amounts can be as little as $1,000, but lines of credit can be as high as $10,000.
As stated on their website:
“OnDeck provides helpful loan advisors that will call you within a day of submitting your application to review submitted paperwork or discuss more background information about your business. Interest rate is approximately 9.99%. “
A leader in online lending that specializes in short term business loans. If you handle finances well and need a quick option other than your cash flow to facilitate the purchase of a laser engraving/etching machine, look no further. QuarterSpot is the perfect short term loan provider that enables you to pay early without any penalties.
You can arrange for monthly payments, which is advantageous over some other lenders that require weekly payments.
On the negative side of things is high-interest rates, which is expected from an easy to obtain short term business loan. High-Interest rates have led to vocal borrowers leaving less than stellar reviews online as they realize over time how expensive their short-term loans have become. Use lending responsibly and only within your capabilities to pay back the loan on time.
This unique lending provider offers assistance with the Rollover for Business Startup (ROBS) loans, where the borrower can use 401K funds as a startup loan minus the early withdrawal penalties.
This loan secures funding much quicker than the other options mentioned based on being secured by the borrower’s money. Even if your credit score is languishing in the low 500’s, you can still get approved for a loan with the ROBS plan, which comes with a Rainmaker Guarantee + Audit Shield. These options are an added protection in case of an IRS audit in the future – at no cost to you.
A provider of small business loans and merchant cash advances. An MCA or merchant cash advance is a lump sum provided to you, the business owner, by a commercial lending company with the promise of a percentage of your future business sales.
One advantage of an MCA cash advance is quick access to capital. As a result, though, you may face higher than average interest rates. Still, money is money, and this is one way to fund your business ideas even if your credit score is less than stellar.
Lending Club (the black sheep)
*A Word Of Caution: Lending Club used to be one of the leading sources for business funding, but their reputation was questioned when the Federal Trade Commission sued them for deceptive lending practices in 2018. This stemmed from numerous customer complaints that Lending Clun deducted fees amounting to thousands of dollars after promising borrowers no hidden fee charges in their loans. To this day, the case remains unresolved.
We hope this has been an immensely helpful post on all the various options you have for financing. I’d encourage you to check out our financing partner through this link and consider using them for financing your next laser machine.