Why do people finance construction equipment?
Purchasing heavy machinery and construction equipment can be a huge investment for your business. It can help you make your operations more efficient saving you both time and money, but they normally come with a big price tag. To help pay for the machinery you can choose to finance or lease it. In this blog post, we will find out all the different ways you can pay for your heavy machinery.
<div id="Machinery-and-equipment-finance">Machinery and equipment finance</div>
Heavy equipment finance is a type of asset financing that helps companies purchase expensive machinery. This can be anything from crushers and screeners to excavators and trucks.
Heavy equipment can cost a lot of money, and finance allows you to pay off the equipment in monthly installments rather than a large one-off payment. Heavy equipment financing allows businesses to purchase key equipment without having to break the bank.
<div id="where-finance">Where can I get equipment finance from?</div>
There are lots of companies that you can finance your heavy equipment with. Including commercial banks, finance companies, and online machinery companies like Machinery Partner.
Always do your research! Speak to an expert to get the best deal for you and your business!
<div id="hard-to-get-finance?">Is it hard to get equipment finance?</div>
When it comes to financing equipment, many people find the process to be difficult and overwhelming. There are so many factors that go into getting approved for equipment finance. For example, depending on the equipment you’re looking to finance and its purpose - lenders will look closely at your credit history, income level, business plan and cash flow projections. That means if you don’t have a good credit score or have a good cash flow, you may have a hard time getting approved.
If you don’t have the best credit but still want to finance heavy machinery - don't worry. There are specialized lenders in the market that offer finance for businesses that might not be able to get approved with traditional lenders.
What are interest rates?
Interest rates are the amount of money you pay back to a lender for borrowing money. They are normally added as a percentage to your monthly repayments.
Interest rates for equipment finance usually depend on what type of equipment you are financing. They will all change depending on the terms of your financing agreement. Normally, the longer you finance your loan, the lower the interest rate will be. Lenders will also look at your credit score when setting interest rates. The better your credit score, the more likely you are to get a lower interest rate.
You should always shop around for the best deal. Find one with the most favorable terms and lowest interest rate before signing any financing agreement. Machinery Partner do all the work for you when it comes to heavy machinery finance. We work with a full range of lenders to get you the best finance deal possible. Call a Machinery Partner expert today.
Need more information on equipment financing?
For more information on heavy machinery financing available through Machinery Partner check out our finance page or call a Machinery Partner expert today.
Rent-to-own is an ideal solution for businesses that don’t want to commit to buying a piece of equipment right away. This setup gives people the option to rent a piece of equipment for a set period of time and then, if they want to keep the equipment, can purchase it before the rental term ends. This rent-to-own arrangement allows businesses to use a piece of key equipment without needing to commit to buying it immediately.
<div id="SBA-504-Loans">SBA 504 Loans</div>
SBA 504 is a Small Business Administration Program loan. It allows small businesses to access to affordable financing for the purchase of heavy equipment. This loan program allows small businesses to buy or refinance certain items of heavy equipment, including industrial machinery and large transport vehicles.
It also helps them improve existing facilities or build new ones, and create more jobs. With this financing option, small businesses can become more competitive and grow their operations using updated and reliable equipment. The SBA makes sure that lenders offering this loan program understand the financial needs of small businesses so they can provide flexible terms and conditions.
The SBA 504 Loan Program helps small business owners turn their dreams into reality by providing them with cost-effective financing solutions for purchasing heavy equipment. Find out more about SBA 504 loans here.
<div id="Renting-heavy-machinery">Renting heavy machinery</div>
Renting heavy machinery can be a great alternative to buying new heavy equipment. If you have a project but are on a tight budget, renting heavy machinery can save you a lot of money without losing quality. It might not make sense for you to buy a machine that you are only going to use a few times. Renting allows you to use the machine when needed without the commitment of buying. Rental companies can be great for those who need access to heavy machinery without investing in expensive equipment.
Not sure if renting or buying heavy machinery is the best choice for your business, check out our blog post or the video below!
<div id="section-179">Other ways to save money on your equipment purchase</div>
Section 179 is a tax deduction that can be used when purchasing property or heavy equipment such as a crusher or screener. Section 179 allows you to write off up to 100% of the purchase price of your equipment. This helps you to save money on your tax bill. For more information on Section 179 - check out our blog.*
*We always recommend working with a tax professional.