For small businesses looking to buy or lease equipment, Crest Capital offers flexible equipment financing options for loans that range from $5,000 to more than $500,000. At no additional fee, Crest provides six different loan types. For these reasons, Crest Capital is our pick as the best lender for equipment loans.
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Pricing: Rates and Terms
Crest Capital offers financing up to $1 million, with term lengths that range from 24 to 84 months. What we like about this lender is the range of options available to you to choose the financing structure that best fits your needs. We also like that Crest Capital lets you choose your own loan term length that fits into your budget.
With Crest Capital, you can choose between various loan structures, some of which allow you to keep the vehicle or equipment at the end of the term. These are some of the options available:
- Equipment finance agreement: This is a fixed-rate loan offering a monthly payment that does not fluctuate with treasury rates. At the end of the term, you own the equipment.
- $1 purchase agreement: With this lease, you have a fixed monthly payment, and you own the equipment at the end of the lease for a nominal amount, such as $1.
- 10% purchase option:This is a lease with a fixed monthly payment as well as a fixed purchase option. At the end of the lease, you can purchase the equipment at 10% of its original cost, renew the lease or return the equipment to Crest Capital.
- Fair market value:This offers the lowest fixed monthly payments. In addition, the payments are usually 100% tax-deductible. At the end of the lease, you can purchase the equipment at fair market value, renew the lease or return it to Crest Capital.
- Guaranteed purchase agreement:This provides a guaranteed purchase price for the equipment at the end of the term. You can choose a purchase price that is fixed at a certain dollar amount or pick from a range between a fixed minimum and maximum amount.
- First-amendment lease: This gives you a purchase option at one or more defined points during the lease, with the requirement that you renew or continue the lease if the purchase option is not exercised.
- Operating lease:This meets the criteria established by the Financial Accounting Standards Board and is available for equipment with a strong after-market value. If you want to learn more about equipment leasing, check out our equipment leasing buyer's guide.
The above financing structures can be combined with other payment options, including step-up plans (lower payments early in the finance term and higher payments later), deferred plans (defer payment for up to six months) and seasonal plans (no monthly payments during seasonal businesses' slow periods). The seasonal plans are especially attractive for small business owners who own businesses where they only use their equipment at certain times of the year. This kind of flexibility was nonexistent from other lenders and is another reason why Crest is a great equipment financier for small businesses.
Crest Capital offers Section 179 qualified financing, which allows tax deductions on the cost of equipment. Under Section 179, small businesses can deduct up to $500,000, with a threshold of $2 million for total equipment purchased for the year.
Since there many types of financing structures, it's impossible to say what your interest rate would be. Those rates are determined not only by the structure you choose but also by the term length, credit score, your time in business and the type of equipment being financed.
Besides the interest rate, the only fee Crest Capital charges is a $250 documentation fee. If you decide to proceed with a loan from Crest Capital, the lender will collect the documentation fee and first month's payment. The lender then purchases the equipment from the vendor of your choice. Repayment is made monthly via an automatic withdraw from your bank account.
Crest Capital Features
Application and Approval Process
Crest Capital has been providing equipment and vehicle financing since the late '80s. If you're seeking financing for $250,000 or less, you fill out and submit a simple application. This is ideal for business owners looking for quick funding. You have the option of filling out an application online or completing a paper version. The paper version can be faxed or scanned and emailed in. The application includes basic questions about you, your business and the equipment you want to finance.
These are some of the specific questions included in the application:
- Company name, website and address
- Each company owner's name and Social Security number
- The percentage of the company that belongs to each owner
- The company's bank name and account number
- Estimated cost of the equipment
- The length of the loan or lease you want
- Condition of the equipment
- Name and address of the equipment vendor
Depending on how much money you ask for, your term will be between 24 to 84 months.
There are several minimum eligibility requirements you need to meet to be considered for an equipment loan with Crest Capital. You must have a minimum credit score of 700 and have been in business for at least two years.
The lender also requires that you don't have any current delinquent payments or a history of nonpayment to creditors. The lender reviews all this information and generally makes a final determination within four hours. This is significantly faster than many other equipment financing lenders we examined. This approval process is seamless for businesses looking for funding under $250,000.
Financing for more than $250,000 requires a more extensive application process. Besides your credit score and payment history, Crest Capital requires:
- A written overview of your organization (two pages max, plus brochures and/or resumes)
- A written description of the purpose of the equipment and financial justification of acquiring the equipment
- Last two year-end financial statements and current interim financial statements
- Tax returns for the two most recent years (unless financial statements are audited or reviewed)
- Last two years of tax returns on all entities and principals owning at least 20% of the company
- Current financial statement on all entities or principals owning at least 20% of the business
- List of current loans and leases (include lender name, account number and phone number)
Time Until Deposit
Once you submit all this information, Crest Capital makes an approval decision usually within one business day. This is considerably faster than many of the other lenders we investigated, which take up to two weeks to approve borrowers.
You don't need to put up collateral because Crest's loans are secured by the equipment, vehicles or software being financed.
Crest Capital Pros
Crest Capital has a quick application process, fast approvals, a variety of financing terms and excellent customer service. It can even pair you with an equipment or vehicle vendor. It is a good alternative lender for investing in new construction equipment, vehicles or business software. They also have a range of agreements for you to choose from.
Crest Capital Cons
The biggest drawbacks with Crest Capital are its requirements pertaining to the minimum credit score and time in business. The requirement for at least a 700 Equifax score could eliminate some businesses from even being considered for financing. In addition, the company doesn't work with startups.
We were extremely impressed with Crest Capital's customer service. To test its customer support, we called the lender multiple times, posing as a business owner interested in equipment financing.
Each time we reached Crest Capital, a professional, pleasant and helpful representative immediately answered our call. Just having someone take our call was a step up from some of the other lenders we contacted, which sent us straight to voicemail.
Instead of trying to get information about our business and the equipment we wanted, Crest Capital representatives allowed us to ask all our questions first. Some of the other lenders we spoke to brushed aside our questions and immediately started gathering the information they wanted, like how much the equipment we wanted to finance was. Other representatives inquired about the financial status of our business during the coronavirus and offered resources we could use.
During all our calls, the representatives we spoke to provided clear and detailed answers to our questions. Other lenders we spoke with gave unclear answers that left us confused about exactly how their financing worked.
Crest Capital representatives are available via phone, email and online forms. The company's website features details on each of the lender's financing programs, FAQs and a Section 179 calculator to give you an idea of how much money you could save by using those tax-deduction options.
Crest Capital is an accredited member of the Better Business Bureau and as of May 2020 has an A+ rating. It also scored a 5 out of 5 stars in customer ratings. Many of the other lenders we examined had at least some complaints filed against them. Crest was one of the only lenders we found that had positive reviews and not one complaint.
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