If your company is considering financing heavy equipment like a crane, bull dozer, dump truck, earthmover, forklift, or excavator for an upcoming project, you know how expensive your investment can be. We know that you don’t want to bury yourself in mounds of paper trying to figure out your best financing alternatives. So, we’ve created this article to help you uncover the dirt and diamonds about the leasing process. Let’s get started!
Heavy Equipment Leasing – Also known as a capital lease or finance lease, this is the route to go if you intend to keep the equipment to the end of the lease term. This type of lease offers an option to purchase the equipment for a nominal fee at the end of the lease term.
When you’re talking high-cost items like an earthmover or bulldozer necessary for a big dig project, the first question which generally tends to arise is that Can i get a long term loan with bad credit? The answer to this is completely reliant on the company you are planning to procure your loan from. Personally speaking, for such high priced machines, leasing is always better. Leasing is faster, requires less of your attention and less upfront money than a bank loan. With a lease agreement, you will only require a lien on the equipment itself and not on other business assets. This is important information to consider. Sometimes, you need to ask, is a personal loan right for you? Are there other options? This is especially true when considering heavy machinery.
True Leases – True leases, also called operating leases, typically don’t span the fully expected life of the equipment. At the end of the lease, you can choose to walk away from the equipment or purchase at fair market value. Generally, the payments are lower because the Lessor has the opportunity to resell the heavy equipment when the lease ends.
Bank Loan – If you’re thinking about getting that steamroller through a bank loan, make sure you look for a financial institution offering good interest rates and a decent payoff situation. Investigate a simple interest loan because they can be paid off earlier, at a lower overall payment amount, and without penalty. Consider these reasons to invest in preventative maintenance services prior to taking a loan.
After researching your financing alternatives, we’re confident that you will find that it makes good business sense to lease your heavy equipment. You see, borrowing money to buy and own equipment, means that you are using up available credit, which, if used for other purposes, has the ability to earn a return much higher than the cost of the lease payments. Leasing offers you a new source of credit with the added benefit of being able to expense the payments in many instances.
Turn to the experts at Taycor Financial for all your heavy equipment financing . needs. Taycor is one of the premier equipment financing companies in the United States. With a commitment to personal service, quick turnaround time and competitive rates, they are the ideal company for your financing needs. Contact Taycor today to find out how leasing can help keep more cash in your business!