Leasing older used models can be one of the most affordable ways to get the heavy equipment your business needs. Find out how to make used equipment leasing work for you!
A lot of people don’t know that you can get a lease to pay for private sale equipment. Leasing isn’t just for when you buy from a dealership.
Lease-to-own is great for private sales if you want to spend less up front and close the deal without the hassle of a loan. Find out how quick and easy it can be!
Rejection is frustrating when you’re trying to build your business. But it doesn’t mean you can never get equipment lease financing. Improve your chances with this short guide.
Leasing is a great option if you want to lower your upfront equipment purchasing costs. With equipment leasing, you are able to spread out your payments on a schedule that works for you plus saves you money on taxes.
With an equipment lease, you can expect:
It’s no secret that the supply chain crisis is driving up the costs of doing business and making it harder to find the heavy equipment that you need.
Competition for used equipment was already fierce at the end of last year, when it was reported that earthmover, truck, tractor, and other equipment prices were at least 25% higher than in late 2020. Then November’s flooding and mudslides cut the rail lines and highways in BC, slowing down the flow of new parts and equipment coming into Canada through the port of Vancouver.
So what can you do about it? Get creative with a leasing strategy that keeps you making money despite supply chain disruption!
Did you know there’s a way to sell your equipment and without losing it? Yes, you get cash from the sale and keep using the equipment.
That’s called sale and leaseback financing.
It might be a good option for you if:
Sale and leaseback – leaseback for short – is a way to turn the equity in your assets into cash. The way it works is that you sell the equipment to a leasing company and then lease it back right away. You still have the equipment and you can keep using it like before. It’s your best option if you want to have your cake and eat it too.
Collateral is an asset(s) a lender accepts as security for a loan, finance, or lease. It is something you would commit to guarantee a loan. Almost all equipment, vehicle, or home loans will require some sort of collateral assets.
Loan collateral is purely for the protection of the lender. The lender wants to ensure you will pay for the loan or lease they are providing to you. Thus, if you default on your payments, it is possible that the lender may attempt to repossess an asset or put a lien on it.
The more confidence you can give the lender in your ability to pay back the loan, the more likely you will get approved with better terms.
So how does collateral work in equipment financing and equipment leasing? Let’s explore…
In the market for new or used equipment? Maybe your business is in a growth cycle, changing strategies or replacing equipment that is past its prime.
Whatever the reason, you’re likely thinking about financing. Should you lease or buy? What financing strategy will prove most affordable—and help you stay flexible for the future?
Getting a clear picture starts with comparing the two basic financing types. Leases and loans both have a lot to offer. You can optimize your return on investment by identifying the format that best suits your business needs.
Financing can be confusing and, yes, kind of boring. It does pay to understand a few things though, especially when it relates to saving on your monthly lease payments.
Give yourself an advantage by understanding the breakdown of monthly payments. There are a lot of moving parts in a lease. If you just compare payment amounts, you may not be getting the full picture.
Your lease term, end of lease agreement, inspection or transport fees, down payment and interest rate all go into determining your monthly payment. Let’s take a closer look at the factors that go into determining your monthly payment.
Dump trucks and dump trailers are expensive. Even used dump trucks can set you back over $100,000—easily making cash purchase difficult for most owner-operators. You need the dump truck to get the contracts to pay for the truck.
The good news? There are more financing options than you might think.
Traditional bank loans are not the only way to finance new and used equipment. This article will lay out 7 ways leasing can change the financing game.
