Your business relies on heavy equipment to get projects done. If you find yourself turning away clients because you don't have the necessary equipment, you can lose money and a large part of your customer base. Leasing large and expensive equipment is a great way to have the tools you need without paying a lot of cash up front, especially when you don't have much as far as liquid assets. While it can be difficult to get financing for heavy equipment leasing when your company is in debt or doesn't show a lot of profit, it's not impossible. The right loan and financing company can help you get the lease you need by working with you. Here are some options you may discover when you try to get heavy equipment leasing for your company.
If you don't have a large sum of money to pay upfront for your lease, then you may be able to use some of your already owned equipment as collateral in addition to a smaller down payment. Your equipment must be owned outright, in decent repair, and fairly new in order for this to be an option for you.
Large down payment
In some cases, a large down payment on your lease can help you achieve the loan you want. Since lenders consider you less of a risk when you pay a large percentage of your lease in advance, you can get the heavy equipment leasing you need even if you have a poor financial history or lack of profit in your company. In some cases, you can combine a large down payment with collateral to obtain a larger lease.
Shorter lending terms
Your lender may want you to choose a shorter lending term in order to get the heavy equipment lease you want. Lessening your lease agreement by several months benefits the lender because it makes your monthly payments larger and shortens their commitment to your lease agreement. This is something your lender may want to do if you have a smaller down payment and no collateral. If you pay your monthly payments on time, you may be able to readjust this payment term at a later date in your agreement.
If your company doesn't make a lot of money or has a poor financial history, you may think getting a heavy equipment lease is nearly impossible. It may take a bit of extra effort on your part, but you can still get the loan you need with the right tools.Share
5 June 2015
A few years ago when I decided to follow my dreams and open up my own restaurant, I realized that I was severely lacking working capital. I didn't have enough money to rent a space, buy equipment, or hire staff. Fortunately, through the power of lending, I was able to secure my future with great financing. However, a lot of people aren't as lucky. My blog is here to teach you more about different types of loans, so that you don't make the same mistakes other people do. You never know, this information could save you time, frustration, and even financing charges.