4 Facts Nobody Told You About Heavy Equipment Financing
Obtaining heavy equipment machinery can require both effort and expenses. Earlier, heavy equipment financing was a very tedious task. One had to process a lot of information, go through a long lender questionnaire and also make sure that the deal he/she was getting is a profitable one. However, with the dawn of internet, things got a bit easy. Now, one can easily search for the best financing options that can cater the needs of their company.
Although heavy equipment and truck leasing have become a lot simplified, still one must know about the ins and outs of this industry. Given below are some facts regarding heavy equipment financing.
- You Can Finance Used Heavy Equipment – Business owners are sometimes unaware of the fact that used heavy equipment can also be financed. Financing and leasing companies can provide myriad options when it comes to used equipment financing. Another important fact that people rarely know is that financing used heavy equipment has a considerable value as compared to their original worth. A long list of used heavy equipments can be financed. They are:
- Trucks and trailers
- Scrapers
- Bulldozers
- Machining assets
- Heavy construction equipments, etc.
- There Are A Variety Of Finance Options – While procuring finance for your heavy equipments, you should carefully inspect and analyse all possible financing options. The type of financing that you’ll choose will also depend on the overall credit of your company. Following are some common financing options:
- Secured business loan – If your balance sheet is good and you don’t have any outstanding debt, then you can easily get a business loan from any financial institution. Unfortunately, if you feel like upgrading your equipment, you’ll have to invest more money.
- Leasing – Leasing is another widely preferred equipment financing option because of its numerous benefits. The various advantages of leasing are; customizable term options, flexible terms for payment, simple upgrades, balance sheet management and a lot more.
- Application Process – Generally, the application process for heavy equipment financing is relatively simple and straight forward. You can either work it out on your own or with someone who has a good amount of expertise with the leasing industry like; a lease advisor. Your advisor can help you maximize the benefits that you’ll reap from leasing. Moreover, he/she will also make sure that the entire process is carried out smoothly.
- Approval – If you can provide all the info that is required, financing will take a day or two to get approved. The rates, however, can vary depending on the equipment that is being financed, the amount and your company’s credit history. After receiving an acceptable offer, one can then start preparing the necessary documents. If the company takes two or more weeks for approving the finance you need, the reasons could be many like; they are inexperienced, or can’t find the equipment you need or any other factor.
An ideal financing is one that encourages your business and does not tie up with your cash flow. Beware of companies that offer extremely low rates but have certain hidden costs in their contract.
We, at Canada Equipment and Truck Loan, have been providing heavy equipment financing and truck leasing options for a considerable time now. Call us anytime to get a ‘Free Quote’ on our services.
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