Equipment financing is essential for any company that requires heavy machinery to conduct complex operations, but don't have the capital to finance them. It allows you to lease heavy machinery for a certain period while enjoying the benefits and revenue of new and used equipment. There are many options available, from financing in-store and even at upcoming equipment auctions near me.
With the right financial partner, equipment financing can help your business grow. Unfortunately, there are many myths about equipment financing that prevent many construction site managers from pursuing this option.
You need to separate fact from fiction if you want to get the best out of your equipment financing. Here are some common myths you should be wary of.
1. Financing is too expensive
Equipment financing improves liquidity in your business and provides your business with numerous tax advantages. Leasing machinery may seem expensive to a small company, but its advantages and benefits are worth it over a long period.
For instance, your company has increased production leading to improved sales in the company.
2. Leasing is appropriate for certain assets only
You can lease any type of assets your company needs depending on what your financial lender offers. For example, long term assets like construction equipment and short term assets like computers can be leased.
Ensure you know what your lender offers in terms of buyout options and fixed-purchase options. For heavy machinery, you can also get financing for used equipment contrary to the popular belief that only new equipment can be leased.
3. You can't upgrade when you finance equipmen
Due to advancements in technology, newer versions of heavy equipment are constantly hitting the market, forcing companies to upgrade. Luckily, financing allows you to upgrade your leased equipment without increasing your monthly payment.
If upgrading is essential to your business, talk to your potential lender to find out what options you have.
4. It doesn’t provide capital opportunities
One main benefit of financing is you can possibly receive 100 percent of the capital needed to buy the equipment. This happens over time, as you are making payments. This is especially important to smaller companies who can’t afford to purchase machinery outright, but can still invest in their future.
What are the next steps a business needs to take to ensure they are able to finance heavy equipment? Follow this link to know what documentation is critical.
There are plenty of options if you are looking to finance heavy equipment. If you have looked up heavy equipment auctions near me and are ready to attend, here a few tips for before you go.
Research is one of the most important things, learn the worth of your equipment and how much it has been used. You should always show up early to inspect the equipment you want. Always read the fine print, and get a good understanding of their financial standpoint.
From your research, heavy equipment auctions near me, you found that Alex Lyon and Son is an international auction company that has heavy machinery and other large equipment options for sale. Contact us today to ask about our financing options!