NAV offers various services for its customers, including the opportunity to view business credit reports, improve credit scores, and acquire business financing. This company offers holistic financial services, particularly tailor-made for businesses to expand further and plan their financing.
Their tagline "you know your business, we know financing" directly represents their ability to handle all financial issues concerning a particular business. Therefore, it details ways to set objectives, offers the opportunity to go through a financial overview, and conducts pulse checks to accommodate your business's financial goals with expansion possibilities.
NAV offers the opportunity to match with potential financing options by providing business goals and real-time data. Therefore, customers are subject to a higher possibility of approval by matching to financing options via NAV. This company offers business loans, credit cards, and various business services.
This company is backed by highly professional financing experts who can cater to customer needs by providing the best financing solutions. These managers can save the customers time by directly interacting with potential lenders to aid in the approval process. This ensures that customers can easily focus on their business without having to worry about gathering finances because NAV financing managers take the pressure of that completely.
“NAV aims to predict customer needs, align their qualifications, and help the transactions between lenders, partners, data providers, and small businesses”
NAV's Mission and Services
This company has the ultimate aim of reducing the number of failed startup organizations or small businesses. This company aims to predict customers' needs, align their qualifications, and help the transactions between lenders, partners, data providers, and small businesses.
With over 30 million small businesses established in the United States, there are numerous opportunities to create employment and add to the country's economy through these, but the lack of financial infrastructure causes a hindrance to their full growth. Therefore, NAV steps in with a customized plan for each small business, with the ultimate mission of empowering their financial decisions.
This company's method of empowering financial solutions traces back to them acquiring insights from verified personal, business, and cash flow data to formulate recommendations for a consistent marketplace.
NAV's personalized marketplace experience offers a range of options. These include tailor-made recommendations from more than 100 financing options, the opportunity to match financing options that offer 3.5 times the possibility to get approved, and credit cards, business loans, insurance, and various other services.
NAV offers various loan types, including SBA loans, bank loans for businesses, business lines of credit, invoice financing, merchant cash advance, microloans, and, most importantly, equipment financing. Furthermore, this company also offers startup loans, bad credit business loans, and fast business loans.
All of these types of loans collectively provide businesses with the opportunity to expand their services further by offering them financial help and consistency. Moreover, these ensure that the business owner will have better cash flow management.
NAV's official website also features numerous blogs to inform its customers how to acquire a business loan or business loans without conducting credit checks. Customers are also provided access to business credit cards for startups, bad credit customers, or building business credit.
Who Should Apply for Commercial Truck Financing with NAV?
NAV offers businesses the opportunity to acquire equipment financing. This is the use of a lease or a loan to borrow or purchase assets specifically for businesses. This form of financing allows customers to acquire assets specifically for their business's use by purchasing or leasing them. These assets may include a restaurant oven or a commercial truck.
Since this form of financing requires you to keep the equipment itself as collateral, it allows owners of small businesses to acquire the equipment even if they cannot give up other assets as collateral.
The process of equipment financing is widely convenient. This form of financing offers an alternative to directly purchasing equipment from an equipment dealer by browsing through various equipment financing companies, banks, and other lenders specializing in loans specifically set aside for business equipment, such as commercial trucks or vehicles.
This form of financing keeps the equipment as the collateral for the loan. Therefore, if a customer fails to repay the loan on time, the company or the lender has the option of seizing the collateral. However, this is one of its advantages because customers cannot offer other assets for collateral.
Applying for equipment financing through NAV requires the customer to fill in an application reviewed by its network of lenders. They will then align the customer's qualifications with their finance options and offer you a particular loan with a pre-set interest rate. If the customer agrees to all loan terms and conditions, they can sign the contract and begin repaying the loan every month for their purchase.
Is It Better To Purchase Or Lease Equipment?
As an owner of a business, there are three options for equipment financing. These include leasing it, purchasing it, or doing a sale-and-leaseback. To decide between these three options, it is integral to know the business's exact needs and the amount of time it requires to keep or use the equipment.
In the case of leasing equipment, customers are liable to spend much less upfront. Therefore, this option is convenient for owners who cannot offer a large amount right off the bat through a large loan. Lease options also offer customers the option to negotiate the lease terms with the added incentive of upgrading the equipment once their lease contract ends.
Therefore, customers are not liable to use one type of commercial truck forever in such circumstances. They can always upgrade their option to a better truck once the lease for the previous one ends. However, there is one major drawback of leasing equipment.
Due to the monthly repayments, customers will likely spend more on leasing equipment over time than they would have on purchasing it. Moreover, customers do not have ownership of the equipment at the end of the day and will have to find an alternative once the lease term ends.
In the case of buying equipment, customers are provided with complete ownership of the equipment. They have the option of selling it if they do not require to use it further or wish to replace it. Moreover, customers have certain tax incentives that come with owning business equipment which can be taken advantage of.
This method will require the customer to pay a higher price initially. Moreover, if the equipment becomes outdated, the customer will have to replace it and selling the original equipment might not raise enough to buy updated equipment.
Sale And Leaseback
In the case of the sale-and-leaseback option, customers are meant to sell the equipment to a particular lender in exchange for cash and then lease it back from them. In this circumstance, the customer does not have ownership of the equipment. At the end of the period, customers can either return the equipment to the lender or purchase it from him.
This option is useful because customers can sell their equipment to the lender in exchange for cash. They can use this amount to expand or operate their business while simultaneously accessing the equipment. This option is normally a cheaper alternative to purchasing new equipment.
However, there are drawbacks to opting for this option. Customers have to deal with the reality that their equipment is their collateral, and therefore, if they are unable to pay back the lease, they will lose access to the equipment. This option normally operates on a ratio of 2:1. Therefore, if the customer wants 150,000 in cash, they must possess 300,000 in equipment value.
“Small business owners can benefit largely from the low annual percentage rate of equipment loans compared to other financing options”
Pros and Cons of Obtaining Commercial Truck Financing from NAV
There are numerous advantages of financing business equipment from NAV. These include:
- A comparatively low annual percentage rate.
- Fixed monthly repayments.
- Aids in improving business credit.
- The collateral is the equipment.
Small business owners can benefit largely from the low annual percentage rate of equipment loans compared to other financing options, e.g., credit card financing. An additional perk of equipment financing is that the tax deducts the lease or loan. Therefore, if the customer acquires a loan of $200,000, the treatment for that loan is not the same as earning it through revenue.
This type of financing can also help customers improve their business credit history, which opens up financial opportunities for them in the future. Moreover, this form of financing comes with fixed monthly repayments, ensuring a steady cash flow without an unforeseen increase.
This form of financing is beneficial because, in the case of leasing equipment, business owners can save cash upfront, which aids in cash flow management and offers them the opportunity to avail the advantages of the latest technology without having to pay the complete price.
This type of loan is also easier to acquire for those who have failed to get approved for other financing options because of their lack of ownership for collateral or low business credit scores. This reason becomes redundant for equipment financing because the equipment up for purchase or leasing is the collateral.
There are also some disadvantages to opting for this form of financing. These include:
- A high down payment.
- If the customer needs good terms, they may need strong credit.
- The acquired equipment may become outdated, and the customer is in contract to keep it until the payment term.
Equipment financing isn't a walk in the park. Customers may not benefit from these loans if they suffer from low business credit scores because that might cause the lender to quote a relatively high annual percentage rate. Another drawback is that businesses may have to take away from their profit margin further because acquiring business equipment costs higher than paying through cash all at once.
How Do You Qualify for NAV Commercial Truck Financing?
Although the requirements to qualify for equipment financing or commercial truck financing varies among lenders, there are a few general factors that all lenders seek and are recommended to ensure before applying. These include:
- When applying, the business owner should be in business for more than 12 months.
- The business owner must have a credit score above 650.
- Overall revenues of the business should ideally exceed $50,000. High business scores are likely to increase the business's chances of getting equipment financing at favorable terms. On the contrary, a lender will consider the business owner's credit score if the business credit scores fail to meet the cut. To check a business's credit score, the owner can acquire the credit report from credit bureaus such as Equifax or Experian.
However, it is important to note that even if a particular business owner fails to meet the above requirements, they may still be qualified to acquire an equipment loan if they pay a down payment of 5-25% of the loan value.
Other requirements that a NAV partner lender may ask for would be the owner's ID or driver's license and proof of their affiliation with the company or business. Furthermore, the owner may have to provide a detailed business plan to show their financial planning for equipment used along with the balance sheet, cash flow statement, and profit and loss statement. A new business may be expected to provide details regarding their finances.
Once the lender has access to all the mentioned information, they will review it and decide the business owner's annual percentage rate and credit approval accordingly. The customer or business owner will then be provided with the equipment loan terms or options. Generically, the loan term varies from as little as a few months to as much as 10 years, depending on the total loan amount.
Loan Application Process
The process of applying for equipment financing through NAV is the same whether the customer opts to do it from one of its branches or online. Therefore, if the business owner prefers to use pen and paper to sign their contractual agreement, they have the option of visiting the branch. Otherwise, NAV's financial options are available through its official website too.
It might be time consuming to fill in the application. However, if the customer has gathered all the required documentation, they will save plenty of time and effort. These documents should include the following:
- Personal and business credit scores – the bank is likely to acquire credit reports themselves.
- Bank statements for the business.
- Tax returns for personal and business tax accounts.
- Any registrations or licenses are applicable for conducting business in the customer's state.
- Other relevant financial documents include unpaid invoices, credit card sales, and accounts receivable amounts owed to the customer.
- Any relevant legal contracts such as incorporation, franchise, and leasing.
- Details of future costs and cash flows in a business forecast.
- Any relevant underserved representation documents, e.g., loans for women-owned businesses.
- Detailed business plan with strategies for growth and marketing.
All in all, any documents directly related to the business's financial statements and business plan are important to prove that the customer can pay back the lease or loan amount.
NAV Commercial Truck Financing Interest Rates
Equipment financing by NAV consists of loan amounts ranging from $5,000 to as much as $5MM. The interest rates or annual percentage rates depend on the credit profile of the customer and the business's cash flow or other document information. However, the general range is from 2% to 20%. The higher the business credit score, the lower the APR will be.
The turnaround time for this type of financing is as fast as 2 working days. Moreover, customers have the option of repaying this loan or lease option from 12 to 72 months. The repayment term also depends on the customer's credit profile and overall ability to repay the loan. Factors such as the business's profitability and cash flow play an important role in these decisions.
Frequently Asked Questions (FAQs)
What is a sufficient credit score for a small business for loan and lease approval?
Every type or range of credit score varies in terms of its financing tool options. There is some equipment or financial option available for every credit score. Generally, the higher the credit score, the better the rates. However, a FICO score of 600 to 700 is fairly adequate.
Is it possible for a customer to acquire a business loan if they have bad credit?
NAV does offer the opportunity to acquire a business loan for customers regardless of their bad credit. Since there are numerous business financing options available, every business or credit score has the opportunity to acquire some financing. Therefore, you may find a financing option despite your bad credit history.
The initial step recommended for a customer is to acquire a credit report to know their credit condition. If they have the resources to improve their credit with time, the better option would be to wait before applying for financing. If improving the credit is not an option, cash flow loans and merchant cash advances are good options.
Is it difficult to acquire small business loans?
The difficulty of acquiring small business loans entirely depends on the business's qualifications, such as the amount of time since it was established, business credit scores, personal credit scores of the owner, and the business's revenue.
Business owners who are qualified may acquire business financing relatively easily. On the contrary, new businesses or those with low revenues or bad credit history may find it difficult to acquire business financing. The recommendation for the customer is to align their qualifications with the right form of financing.
What is the process of getting a loan for a small business?
The general recommendation for a customer is to know their requirements for the loan and then align the requirements with their qualification. They should carefully analyze the annual revenue, cash flow, and credit scores to gauge their qualification in terms of the repayment term or rates.
Which small business loan is the easiest to acquire?
The qualifications play the basic role in deciphering which loan is the easiest to acquire. For new businesses, the owner may need to consider a business credit card or personal loan to build the business. As the business expands, the owner may be qualified to acquire other types of financing, including lines of credit and working capital loans.
How can a business with lacking funds acquire a loan?
If there is a lack of personal credit or funds for a business, one of the financing options to consider is crowdfunding. However, crowdfunding requires adequate marketing of the business to attract a large enough funding. Customers can find additional help organizing finances and acquiring help for their small business at SBA.gov/local-assistance.
Is it a good idea to acquire a loan for small businesses?
Financing in any form is risky due to its nature of borrowing. Therefore, it is integral that the customer repays the funds on time. If the customer fails to make payments on time, this may cause a negative impact on their credit, which may restrict the business's future financing options. However, acquiring a loan for a small business can improve cash flow management and improve the customer's credit if used in the right manner.
Customers can contact customer service agents for financing options through an online contact form present on its website. Moreover, details of NAV's offices are given below if the customer prefers to visit one of the branches and directly speak to a customer service representative:
- The California Office is located at 11 N Ellsworth, Suite B San Mateo, CA 94401.
- The Utah Office is located at 13693 South 200 West, Suite 200 Draper, UT 84020.
- The Pennsylvania Office is located at 1 Summit Ave Broomall, PA 19008.
Therefore, applying and the results associated with NAV is simple yet fruitful. This company provides a personalized plan for small businesses to aid in their processes, finances, and marketing approaches.
This company's numerous business loan options and exclusive equipment financing rates ensure that its customers have the options and ability to expand their businesses responsibly while regulating its cash flow.