Paving equipment financing can be secured from a number of different loan and leasing sources here in Canada and also in the U.S.
Because of the wide range of paving equipment types (asphalt, stone, etc.), there will some variability in terms of construction equipment financing companies that will be interested in any one particular financing request. For instance, paving equipment under $250,000 in value will have many more equipment financing and leasing options than higher valued paving equipment.
And when you layer in used equipment paving equipment, there will again be less lenders interested for different types of paving assets.
So the key in getting the best paving equipment financing options is to make sure you’re applying to the most relevant equipment lending and leasing companies and providing them a financing application package that accurately covers u off their assessment requirements so you can get a positive answer in the least amount of time possible.
The best way to accomplish this is through the services of an equipment leasing specialist who maintains an understanding of who is lending in the market and who is not, where the best deals can be found for a given equipment financing scenario, and ones that should be avoided.
Because many equipment financing and leasing companies only work through third party agents or brokers, the only way you can get full access to all your market options is to work with an experienced financing specialist or broker.
Because of the ongoing need for road maintenance and repair as well the strong government commitment to invest in infrastructure, there is tends to be a strong resale market for used paving equipment which makes used assets easier to finance and at better rates and terms than other categories of assets. That being said, used equipment will still likely require higher deposit amounts, come with higher effective borrowing rates, and shorter repayment terms. Longer repayment terms are going to depend on the remaining useful life of the paving equipment which in some cases can be quite significant.
If you’re just starting to look for paving equipment that meets your requirements, you may want to consider applying right now for a pre-approval so you know exactly how much of funding you have to work with and the repayment terms you will have to cash flow. Getting the financing process out of the way can not only save you time at closing, but allow you to zero in on option that fit your equipment financing approval.