Heavy Equipment Financing
Financing heavy equipment like crane, backhoe, crusher, bulldozer, etc is important in construction business. In fact, the success of construction companies depends heavily on different types of heavy equipment. However, most of these equipment carry a hefty price tag. Therefore, most of the companies look for financing heavy equipment they are interested in buying.
When interested in financing heavy equipment, you should have a clear understanding of what your business needs, different types of equipment and how you’ll pay for it.
Determine the type of heavy equipment your company needs
Your company should know the type of equipment it needs as financial institutions will tailor the finance terms according to your needs. Different types of heavy equipment may need different types of financing. For instance, if you are interested in upgrading your computer system, then finance company will offer you computer finance within a short time with a shorter repayment term. On the other hand, a cement truck or bulldozer is expensive and entails heavy cost, therefore, they are eligible for a long term financing.
Consider refurbished or used equipment
Once you decide on the kind of equipment you want to buy, your budget and the brand you are interested in, you will have to decide if buying a used or a new equipment is the best route to follow. Used or refurbished equipment could be an ideal solution, especially if you want to use it as a backup for your existing construction machines. However, not all used equipment is reliable enough if you are planning to make it your primary equipment.
Not all financial institutions are the same
Now that you are sure what you need and have also decided between a new or a refurbished equipment, its perfect time to start researching on companies financing heavy equipment. A good way to start is by talking to your bank. Although they may not offer you attractive financing options but can offer a good comparison with other companies.
An equipment financing company has more resources and knowledge than a traditional bank about your equipment needs. For financing heavy equipment, seek out a company that has its own underwriting dept as they can respond to your needs for equipment financing more quickly than if they’ll send your application to another dept for review.
If you are concerned about tying up your liquid assets as you are establishing or expanding your business, you should search for a reputable finance company because they have knowledge and experience to guide you when taking financial decisions for your company.
No collateral is required for merchant cash advances. Specializing in alternative financing, not traditional loans.
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