Cremation equipment financing for both human and animal cremation services can be secured from a number of different lending sources including banks, other institutional lenders, or leasing companies.
Like any equipment financing application, the more standardized the cremation equipment the easier it will be to finance and the better rates and terms you are likely going to be able to secure. On the flip side, the more specialized or customized the asset, the more difficult it will be to finance as it will not provide very much security value to the lender or leasing company.
Commercial equipment financing under $s50,000 are primarily approved by the credit standing of the business and the primary shareholders of the business if it’s incorporated, or the primary owners if the business is a proprietorship or partnership. As the amount of financing that is required increases, the more financial information will be required to show the business’ ability to repay the debt as well as to support the borrowing covenant of the business.
used cremation equipment can also potentially be financed, provided that the equipment is not too old and in very good condition. As mentioned earlier, the more there is an active reselling market for a given type of cremation asset, the more likely it can be financed through a loan or lease.
If cremation equipment financing is required on several different assets, all items can be included in one financing facility or they can be broken out into individual loans or leases, provided that the individual asset cost is at least $5,000. In situations where the amount of financing for multiple assets starts to increase above $50,000, a business can also look at splitting up the application among leasing companies as an example. As long as the company can qualify for the overall level of debt, it may be easier to get the assets approved for financing through multiple applications.
The best rates and terms can be acquired through both bank and lease financing facilities. As the credit position of the applicant weakens, the “B”and “C” equipment financing options will come exclusively from leasing companies as banks and institutional lenders only finance “A”Credit deals.
If you have a cremation equipment financing requirement, give us a call and we’ll discuss your available options.