For your business to grow and succeed, it must have the right equipment. Purchasing and maintaining heavy equipment can be very expensive; it can significantly affect your cash flow if your working capital is tied up in upgrading, maintaining and purchasing heavy equipment for the first time. If you are a business that does not have the necessary cash flow to buy equipment or want to spread over the payment costs for several years, the only two feasible options are equipment financing and leasing. At Top Link Loan and Leasing, we pride ourselves on offering businesses and individuals all over the country efficient and straightforward heavy equipment financing and heavy equipment loan solutions.
How does heavy equipment financing works?
If you choose to purchase heavy equipment and become the rightful asset owner, you can obtain the loan for a range of different sources based on the heavy equipment requirements and your credit score. Traditional lenders such as banks and credit unions’ loan policies are much stricter, but you are eligible for a lower interest rate if your credit score is high. There are plenty of government financial aids to help small and medium-sized businesses to obtain loans from various reputable financial institutions. Or you can use private lenders like Top Link Loan and Leasing, where you can get a loan or finance your heavy equipment even if you have a poor credit score.
How to make a well-informed decision?
You must do your due diligence when it comes to heavy equipment loans and financing. Below-mentioned is several factors that you must keep in mind:
- You must identify if owning the heaving equipment will be beneficial for your business. If your company does not require you to change heavy equipment frequently, then yes. But, if you are in an industry where you have to change heavy equipment once every two years, then it does not make sense to buy.
- See if it is financially viable for your business to make a down-payment on heavy equipment or not.
- You must be aware of the hidden charges, such as annual maintenance fees and loan origination fees.
The heavy equipment you buy will determine the growth of your business. There will be a point where you will be required to upgrade or replace your existing equipment to meet the growing demands of your business. For this sole reason, you must consider a heavy equipment loan or financing.
Why consider heavy equipment financing?
- It helps you avoid applying for tedious traditional business loans, as they require you to state your business plan in writing, create thorough balance sheets, and the application process is long and uncertain. When you finance heavy equipment, the equipment will serve as collateral for the loan, lowering the lender’s risk.
- When your existing heavy equipment breaks down, you either have a choice to upgrade or repair it. If repairing your current equipment is more than purchasing a new one, then you should consider applying for heavy equipment financing. It also lessens the hassle of you having to repair your equipment constantly.
- To grow your business and stay competitive by meeting the industry demands.
- Protects your working capital by making sure you do not have to take out a large portion of funds from your cash reserve to buy the heavy equipment required for your business.
- Depending on what kind of business you run, you might require purchasing new heavy equipment like trucks, forklifts etc., to meet your business demands. The best option is to finance, making sure you don’t end up spending a massive sum of money from your pocket.
- When you apply for heavy equipment financing, you are eligible for certain tax benefits like the interest you pay for your heavy equipment purchase is tax-deductible.
Give the team at Top Link Loan and Leasing a call today at 905-565-8667 to find out more information on our heavy equipment financing and heavy equipment loan options or to apply now.