Equipment Financing Tips for Heavy Equipment
Upgrade your outdated equipment or secure the heavy-duty machinery you need to launch your business today. If you’re searching for an affordable way to secure the equipment you need for a particular project, discover how equipment financing can propel your business forward. Start using your equipment immediately in order to earn more and pay off your financing efficiently.
For most equipment, you’ll need to use asset-based financing. This form of financing offers you a loan based on the value of a particular asset. You can borrow against the equipment you’re purchasing, or you can use another piece of machinery you already own. By borrowing against existing equipment, you’re able to enjoy an easier application and better chance of approval. Lenders want to be confident that you can pay off your loan, and having a valuable asset to back up your payment is a great security.
Financing your equipment in this way allows you to receive a more expensive piece of equipment than you may otherwise have been qualified for. If you’re just starting out, you may not have the credit score, financial history or income necessary to become approved for a typical equipment loan. Rather than lease your equipment, simply pay for it with financing backed by your existing equipment or property.
By using this financing solution to purchase your equipment, you’re keeping your working capital free and available to use for any sudden expense. Don’t let a broken machine, large order or other sudden expense cripple your business, but keep your working capital flexible by using financing for your major equipment purchases.
Of course, you’ll need to pay interest on this loan. In the event of defaulting, your collateral could be taken. However, these added risks are typically worth the loan amount. Access to a large amount of capital in order to purchase major equipment might otherwise be unavailable. Even if you have the capital available to make an outright purchase, this major expense could cripple your business by using all your working capital. Allow your business to operate flexibly and take on new clients by financing your equipment and retaining working capital.
If you need heavy equipment to operate your business or launch a new service, you need financing to start earning money today. Keep your company moving forward and grow your business by selecting the best equipment financing option and securing your heavy-duty machinery for your next big project.