Molly By Molly • June 13, 2018

Dustless Blasting® Financing Options

financing-options

 

Why Finance?

Financing your Dustless Blasting® equipment is a great idea. As opposed to investing a huge amount of cash up front, a predictable monthly payment allows for flexibility in your budget. Read more in The Advantages of Financing.

Credit Score

A great place to start is understanding your credit score, which is the starting point for any lending institution to evaluate you. You can learn more about your personal credit at sites like AnnualCreditReport.comCreditKarma, or sometimes even your bank's website. 

Keep in mind that these different sites may use different credit scoring systems. If you finance through us, the decision is based on your FICO credit score, which could differ from other scoring systems. 

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Read on to explore the many ways you can secure funding! 

 

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1.) Equipment Financing

Dustless Blasting is happy to offer a financing option for your purchase. Our lending partners can provide you with affordable monthly payments that fit your budget and allow you to get started right away. 

Who is a good candidate?

This is a great option for those who are looking for a quick and streamlined process. Our lenders are already familiar with Dustless Blasting, so you won't have to explain the business opportunity, provide a business plan, or come up with financial projections like you would at a traditional bank. 

Keep in mind that we offer commercial financing, which requires you to have a registered business name. This means that start-ups must form an LLC before funds can be received. 

In summary:

  • The quickest and most streamlined option
  • Requires a registered business name
  • Generally takes 1-7 days to receive funding 
  • Only available in the USA

Get pre-approved for financing

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3.) Financing with Lendio

Dustless Blasting is not affiliated with Lendio, but many of our customers have had a good experience with them. Lendio provides small business loan options from 75+ lenders with one application.

Lendio offers startup business loans, for which you may have to provide proof of your experience in a field that’s related to your small business. You may also have to provide a business plan, financial projections, or collateral, which could include assets such as a car or house.

They also offer equipment financing. To get equipment financing, you’ll typically need to be in business at least 12 months, have $50,000 or more in annual revenue, and have a credit score of 650 or higher. If your credit score is lower than 650 but you can show proof of solid cash flow and revenues for the past 3-6 months, you may still qualify.

Who is a good candidate?

With so many lenders, Lendio is a good choice for those who want to shop around for rates. 

In summary:

  • You may have to provide more information and do more homework for their lenders
  • Shop around with many available rates
  • Quick funding

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4.) Financing with Klarna

Klarna can be used in the Dustless Blasting® Online Store. It allows you to pay over a period of time of up to 36 monthsYou’ll get an instant decision on whether you're approved with just simple information — no bank account or credit card required.

Who is a good candidate?

Klarna is a good choice for those planning to make a purchase between $600 and $10,000. That means you could pay over time for a Nova 3® Comfort System, DB150®, or even a DB225®. 

In summary:

  • Easy financing for smaller purchases
  • Can only be used in the Online Store
 
 
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5.) Home Equity Loan

Home equity is the difference between your home value and the amount you currently owe. For example, if your home is valued at $300,000 and you owe $200,000, this would qualify you for a loan amount up to $100,000. 

Who is a good candidate?

A home equity loan is an excellent option for people who are looking to be their own source of financing, and have positive home equity. This option often gives you the lowest monthly payment because loan terms are often long. 

Home equity loans are easier to get.

From mortgageloan.com, "Traditional small business loans can require a lot of paperwork. A bank may require a projection of income and finance for the business, personal financial statements, business lease, business plan, and three years of tax returns, among other things." In contrast, home equity loans can be much easier to get, provided that your income, credit score, and equity are acceptable.

Low interest rates.

Because your home is used as collateral, home equity loans offer very low interest rates...much lower than any personal loan or cash advance. 

In summary:

  • Generally gives you the lowest monthly payment 
  • A longer process — home appraisal can take 30–90 days
  • Low interest rates
  • Interest is tax deductible
  • Own the title to your equipment

 

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6.) Borrowing Against 401(k)

The money in your retirement account is your own money that you put away, and a 401(k) loan gives you access to it. 

Who is a good candidate?

Taking a loan against your retirement is a great option for people who have contributed over an extended period of time and want to self finance their new business opportunity. Though the loan must eventually be repaid with interest, you are paying that interest back to yourself and not to a bank. The downside of taking a 401(k) loan is that you remove that money from investment in the market, forfeiting its potential gains during that time. 

No credit checks.

There is actually no lender involved with a 401(k) loan. Since you're borrowing from yourself, no credit check or lengthy application is needed. This makes the process very quick — most applications can be completed online and you can have funding within a couple of days.

In summary:

  • No lengthy evaluation and no credit check
  • The process is typically only takes a few days
  • Most plans have no pre-payment penalty
  • Generally must be paid back within 5 years
  • Own the title to your equipment

 

bank

7.) Local Credit Union

These institutions are owned by their members and have slightly different rules than large chain banks. Members often find that credit unions offer more favorable rates, and extend more credit, than large banks. 

Easy to get financed.

All Dustless Blasting mobile machines come with a title. This is attractive for a credit union as they are often willing to lend provided there is legitimate collateral. 

In summary:

  • Generally lower fees and lower interest rates than banks
  • Emphasis on customer service
  • Not everyone is eligible to become a credit union member

 

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8.) SBA Loan

Who is a good candidate?

Securing an SBA loan is thorough and lengthy process. These loans are good for people who are ready to provide a full business plan and actively participate with a counselor, and who don't need funding right away. www.SBA.gov is an extensive resource to learning more about a start-up loan from the SBA organization.

Guidance and resources

Loans are just one of the many ways that the SBA helps improve the U.S. economy. Lendingtree.com says: "The SBA offers would-be entrepreneurs and existing small business owners counsel, connections, and opportunities to help support small businesses." The SBA is there to help you succeed with your new business endeavor.

Great for start-up businesses

For new entrepreneurs without a lot of experience or business history, getting approved at a traditional bank can be challenging. The SBA makes capital more accessible to brand-new business owners, but interest rates may be higher than other financing methods.

In summary:

  • Counselors and resources are available
  • Government grants may be available
  • 3–12 month process
  • Interest rates may be higher than other methods

 

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9.) Promotional Credit Card

Many promotional periods on credit cards last for 12-24 months and offer a 0% interest rate. This is a very economical way to purchase one of our stand-alone machines. The amount you can borrow on the card will be based on your credit score and income.

Who is a good candidate?

Credit cards are the perfect option for those who are comfortable paying off the balance within the promotional period, but be aware that interest will be due if it takes longer to pay it back.

In summary:

  • Often have a 0% interest promotional period
  • Sign-up bonuses may be available
  • Generally must be repaid in less than 12-24 months

No matter which method of financing you go with, we're happy to help you on the journey to owning your own business. A good place to get started is getting pre-approved for financing — this will give you a good idea of how much you can borrow!

Get pre-approved for financing