Buying heavy equipment? Here's what you need to know

What is Heavy Equipment Financing?

‍

Heavy equipment financing is a type of loan that can be used to finance the purchase of new or used heavy equipment. This type of financing is often used by small businesses, as the cost of heavy equipment can be difficult to afford upfront. Heavy equipment includes items such as bulldozers, excavators, and cranes.

‍

Over the long term, financing equipment is usually more cost-effective than leasing, although heavy equipment lease terms are usually less restrictive. A lease might also be easier to qualify for than a loan. You should also consider your situation after repayment - if you lease, you can start a new lease for new equipment, whereas when you pay off the financing, you own the equipment. There are benefits and drawbacks to both

‍

Benefits of Heavy Equipment Financing

There are a number of reasons why you might choose to finance your heavy equipment purchase, instead of paying for it outright. Some of the benefits of financing include:

• You can get the equipment you need without having to pay a large upfront cost
• You can spread the cost of the equipment over time, making it more affordable
• You can get tax deductions for the interest you pay on the loan

‍

Drawbacks of Heavy Equipment Financing

There are also a few drawbacks to consider before taking out a heavy equipment loan. These include:

• You will have to make regular loan payments, which can be difficult if your business is not doing well
• If you default on the loan, you could lose the equipment
• The interest rates on heavy equipment loans can be high

How To Qualify for Heavy Equipment Loans

Lenders will typically look at a number of factors when considering a loan for heavy equipment. These include the type of equipment being purchased, the purpose of the equipment, the age of the equipment, and the financial history of the borrower. Lenders will also consider the value of the collateral being used to secure the loan.

‍

To qualify for a heavy equipment loan, you will typically need to have good credit and a strong financial history. You will also need to provide collateral to secure the loan. The amount of the loan will depend on the value of the collateral.

‍

Getting the best rate for your Heavy Equipment Financing

Here is what you need to know about getting the best rates and terms for your heavy equipment loan.

• There are a number of lenders who specialize in construction loans, so it's worth reaching out to a few for quotes
• Make sure you have a good understanding of the terms and conditions before signing any paperwork
• Ask questions if something is unclear - better to be safe than sorry later on
• Keep track of your expenses and make regular payments to avoid any penalties or late fees

There are companies, such as National Legacy Capital Group, that specialize in financing heavy equipment purchases. These companies typically have more flexible lending criteria than banks, and they may be willing to work with you even if you have bad credit. 

Heavy Equipment Financing: The Bottom Line

Heavy equipment financing can be a great way to get the equipment you need without having to pay a large upfront cost. If you're in the market for equipment financing, National Legacy Capital Group can help. We offer competitive rates and terms, and we're dedicated to helping our clients get the best possible deal. 

‍

Contact us today to learn more about our services.

‍