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Heavy Equipment Financing

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Heavy Equipment Financing

What Is Heavy Equipment Financing?

Lenders or financiers offer a heavy equipment financing loan to enable borrowers to purchase heavy equipment such as excavators. These loans are typically targeted at small businesses operating in construction or related industries with insufficient funds or the capacity to make upfront payments for the necessary equipment. The cost can often be prohibitively high for small business owners or startups looking to purchase equipment
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Equipment financing offers two options for acquiring heavy-duty equipment: borrowing money from a lender or leasing the equipment. The borrower pays back the loan with interest over a predetermined period, with the equipment as collateral for heavy equipment financing agreements. This enables businesses to acquire the necessary machinery to run, expand, or generate income without paying the full cost upfront.

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Heavy-duty equipment is any machine capable of performing demanding tasks like construction, soil movement, or heavy lifting. Even if a business has the funds to purchase the equipment, opting for heavy equipment financing can be beneficial to allocate cash flow to other areas.

Agriculture-related enterprises also utilize heavy equipment financing to increase productivity with expensive machinery that can improve turnover. Opting for financing enables farmers to avoid jeopardizing their cash flow by buying equipment upfront.

A farmer is driving his tractor through a rural landscape, admiring the natural beauty while also
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Choose the Top Lenders for Startup Equipment Financing

There are several options to choose from when it comes to heavy equipment lending. A good starting point is deciding whether to work with a bank or a non-bank lender.

  • National banks offer heavy equipment loans, while smaller local banks and credit unions may also provide financing. These lenders often offer the lowest rates, but qualifying as a startup can be challenging due to their strict acceptance criteria.
  • Non-bank lenders offer a broader range of lending products and may have more relaxed regulations. However, they usually charge higher rates than traditional banks.
  • If you're serious about obtaining the best rates, shopping around and comparing your options before deciding is a good idea.

Your Partner in Construction Equipment Financing and Leasing

Acquiring equipment is a significant expense for businesses. Alpine Investment Group offers customized financing solutions, including new and used heavy equipment financing. We also have options for refinancing existing equipment to help companies obtain the necessary equipment. We aim to establish long-term relationships with clients and measure our success by their satisfaction. With competitive rates and exceptional service, we aim to keep your business at the forefront of your industry.
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What Types of Equipment Come Under Loan?

A business loan can be used to purchase almost any equipment necessary to expand the business, depending on the industry. The following equipment categories are commonly financed:
  • Tools
  • Office furniture or office equipment
  • ToolsLandscaping equipment
  • Farming or agricultural machinery
  • Small equipment
  • IT equipment
  • Industrial machinery or factory equipment
  • Heavy equipment
  • Retail items

Heavy Equipment Financing FAQs

Lenders typically require assurance that your construction company can repay the loan to qualify for heavy equipment financing. The specific requirements will vary between lenders, but they may consider factors such as your business’s cash flow, credit score, time in the industry, and the type of equipment you wish to finance.
Leasing and financing heavy equipment share similarities in that the borrower can use the equipment without purchasing it outright, instead making monthly payments on the equipment. However, there are also differences between leasing and financing. For example, an equipment lease typically has a fixed term and a monthly rental fee that cannot be paid off early, while equipment loans can be paid off early with the remaining interest waived. Leasing may also allow you to use the equipment as collateral, while additional collateral may be required for equipment financing.
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