For many businesses, securing the right equipment is essential for scaling operations. However, large upfront costs can create financial hurdles. That’s where equipment financing plays a crucial role. Understanding how to build business credit is key to unlocking better financing options. We spoke with industry experts Damon Cincotta, Senior Sales Manager at Geneva Capital, and Chris Arness, Business Development Officer at AP Equipment Financing, to explore business credit financing, strategies to build it, and how financing fuels business growth.
What Is Business Credit and Why Does It Matter?
Business credit financing differs from personal credit in key ways. While personal credit assesses an individual’s financial history, business credit evaluates a company’s financial health and repayment ability. As Chris Arness explains, “Personal credit reflects an individual’s borrowing history, typically tied to their Social Security number. Business credit, on the other hand, is linked to the company’s Employer Identification Number (EIN) and reflects the financial health of the business itself.”
A strong business credit profile unlocks better financing terms, increases borrowing capacity, and reduces reliance on personal guarantees. According to Damon Cincotta, “Business credit measure the credit strength of the business with regards to it’s own lease and loan obligations.”
How to Build Business Credit and Strengthen Business Credit Financing
Establishing and maintaining strong business credit requires proactive financial management. Here are key strategies business owners can use:
- Form a legal business entity – Registering as an LLC, S-Corp, or C-Corp and obtaining an EIN separates business and personal finances.
- Work with trade vendors – Establish trade lines with suppliers who offer Net-30 or longer payment terms and report to business credit bureaus.
- Use a business credit card responsibly – Keeping credit utilization below 30% and making timely payments boosts business credit scores.
- Apply for business loans or lines of credit – Even if not immediately needed, securing a business line of credit helps build credit history.
- Ensure timely payments – A strong payment history is one of the most significant factors in maintaining good business credit financing.
Cincotta adds, “When businesses finance equipment through Geneva Capital, we report their monthly payments to business credit bureaus like PayNet and Experian Business. This will help the customer establish business credit and may help them secure more equipment in the future.”
How Business Credit Fuels Growth
Financing isn’t just about acquiring equipment—it’s a strategic tool for business expansion. “Equipment financing provides businesses with access to the tools they need without requiring large upfront capital investments,” says Arness. By financing equipment instead of purchasing outright, businesses can:
- Preserve working capital for day-to-day operations.
- Take on new projects without cash flow disruptions.
- Scale operations efficiently with minimal financial strain.
- Strengthen their business credit profile by making consistent payments.
Even well-established businesses can leverage financing to optimize cash flow. “We help startups and established businesses get the equipment they need with minimal cash flow disruption,” explains Cincotta. Access to fast financing ensures businesses remain competitive and ready to grow.
Fast and Flexible Financing Options
The speed of securing financing can make a significant difference. When your company stands on the horizon of its next chapter, don’t let the paperwork and hassle of financing slow you down. According to Cincotta, Geneva Capital can provide an approval decision within two hours if they receive the correct information—an application and the last three months of bank statements. At trade shows, they have approved financing in as little as 45 minutes. Arness adds that many applications with AP Equipment Financing can be approved and funded within 24 to 48 hours, particularly for well-qualified borrowers. However, more complex deals, such as startup financing or large purchases, may take a few extra days for underwriting.
Choosing the Right Financing Partner
Selecting a reliable financing company ensures businesses can secure essential equipment without overextending their resources. “Financing helps businesses build credit, reduce personal financial risk, and stay competitive by upgrading equipment as needed,” says Arness. Additionally, financing offers tax advantages, such as Section 179 deductions, which can significantly reduce taxable income.
And companies like AP Equipment Financing and Geneva Capital provide flexible financing solutions for businesses of all sizes and credit levels. “We’re a privately held direct lender with 25 years in business, meaning we can provide bank-quality financing to businesses across various industries,” says Cincotta. “We are fast, we listen, and we care about our customers’ needs.”
How Can Building Business Credit with a Finance Partner Help Your Small Business?
Learning how to build business credit and leveraging it effectively are essential steps for growth. By establishing credit, working with reputable lenders, and strategically using financing, businesses can expand operations, upgrade equipment, and maintain a competitive edge. With financing solutions from experts like Geneva Capital and AP Equipment Financing, businesses can secure funding quickly and efficiently—helping them invest in their future success.
If you are thinking of expanding your fleet and want to speak with one of Ready Mixer’s trusted financing partners, please feel free to reach out to Chris and Damon directly. For more information on business credit financing, please visit our Finance page.
