Specialty Financing

Depending on your industry, you may have a strong interest in specialty financing. This type of financing is considered “non-traditional” but can be used in the same manner as a mainstream loan.

Specialty financing lenders offer business loans for unique situations and industries. While you may be able to opt for a traditional loan in some cases, such as a commercial mortgage, this may not be the type of financing that is best for every purchase.

Types of Specialty Financing

Here are several types of specialty financing and/or the industries in which the loans are used:

• Farm equipment financing
• Tractor financing
• Specialty truck financing
• Excavator loans
• Medical equipment financing

Advantages of Specialty Financing

There are many reasons why specialty financing makes more sense than a traditional loan. Once you know that this type of financing is available, compare the advantages to the potential drawbacks:

• Don’t have to deplete your cash reserves
• Work with a bank that knows your industries and recognizes the unique challenges
• More flexible, better targeted terms
• Long term investment that will benefit your company

Although there are many advantages of specialty financing, including those detailed above, you may find that there are a few disadvantages as well. Two of the most common associated with specialty financing include:

• High interest rate
• High down payment

Amount of Specialty Financing Available

How much of a loan are you interested in? The amount that you qualify for is based on many factors including your industry, the type of financing, and your credit. Specialty truck loans, for example, range from $25,000 to $250,000.

Just like any type of loan, you will be required by the bank to provide documentation including income statements, personal information, and quite possibly a business plan.

With specialty financing it is much easier to obtain the necessary funding for your business based on the specific needs of your industry.