Equipment finance can be accomplished by one of several methods, and the first one that most people think of is getting a loan from a bank. Fortunately, that’s not the only option available to you, because although some bank loans are still available for a heavy equipment finance, they are often difficult to arrange, and they generally take a long time.
Here are some other alternatives when you’re thinking about heavy equipment finance.
Heavy equipment finance
Leasing your heavy equipment with the support of the company which owns the equipment can present a much better alternative than a traditional bank loan. In addition to not having to pass strict credit requirements and go through a ton of paperwork, you save a great deal of time by arranging things through the equipment owner. You’ll generally end up with payments which are even more affordable than a bank loan would have been, so that you will end up saving money over the long haul.
Other advantages of heavy equipment finance
When you get to the end of your leasing term, you’ll then have the option to purchase the equipment outright, to extend the lease for another period of time, or to walk away from the lease altogether. Another tremendous advantage of leasing your equipment is that if you work things right, you can always end up working with relatively new equipment.
By leasing for short periods of two years or so, you can always be working with newer equipment. If you would have purchased that equipment from the outset, you would be stuck with it for its entire life cycle, even while it deteriorated and appreciated in value. At the end of its useful life cycle, you would have been stuck with a piece of heavy machinery that no one wants to buy, and which would then become a total loss for you.
Because you’re always working with relatively new equipment, and you don’t have to wait a long period of time for a loan to go through, your company will also enjoy much faster return on investment. While this may not seem like a big deal, time is money in business, and every day that you can be generating profits instead of waiting for a loan to go through, is literally money in your pocket.
Heavy equipment finance for your business
If your business would benefit tremendously by securing the financing for heavy equipment, we may be able to provide assistance at Norus Capital. Contact us at your convenience to discuss some options for obtaining the capital you need for heavy equipment finance.