Tips for Financing Heavy Equipment

When you need a piece of heavy equipment frequently, it can be cheaper in the long term to buy rather than rent. However, some machines can be quite expensive, so consider financing to lighten the burden. We want to help you get what you need at the prices you want, so we’ve put together some tips for financing heavy equipment.

Consider Your Projects

First, consider how many years you’ll be using the equipment. If you’re using it for as long as possible, you’ll want to look into long-term financing options and a good-sized down payment to lower your monthly payments. However, if it’s only a short-term need, an operating lease might work better. That will get rid of the down payment and you’ll only have monthly payments while the lease is active.

Options for Taking a Loan 

Loans are granted based on a number of criteria, including your financial records, credit score and history, and more. Make sure your business records are organized and readily available before you start your loan hunt to make sure you’re prepared to keep moving. Applying for heavy equipment loans can take weeks or more to be approved, and the funds take even longer to arrive. Try to determine if you can get the full cost of the heavy equipment financed immediately, or if you’ll have to pay some of it out of pocket.

You might also have limitations in where you can purchase or lease the equipment from. Make sure to investigate all your options beforehand to help figure out how long you’ll be waiting for financing approval.

Finding the Best Deal

That said, you have some control over the process of financing heavy equipment. There are a few things you can do to improve and smooth out the process, including having money saved up for a hefty down payment ahead of time. That will make your payments smaller, reduce the interest you end up owing, and help you get things moving faster.

You should also form a budget well in advance of your loan request. This will help you determine how much you can realistically afford to pay for the down payment and monthly installments.

Remember that you can go to local financial institutions for loans, even if you’re not a member there. However, any bank or credit union you are a member of will likely give you better terms overall. Credit unions in general tend to have gentler terms, so they’re a good place to start.

We hope these tips help you quickly get the heavy equipment you need for your projects. To see our selection of Bobcat® equipment we have for sale, or if you have any questions about financing, contact us at Bobcat of Pittsburgh/Erie/Indiana County at one of our dealerships throughout Pennsylvania. We also proudly serve those in Ohio and Indiana.