Specialized equipment like a boom truck can be financed in both a new equipment or used equipment situation. Even with an older model truck, if the equipment is newer or in very good condition an equipment financing solution can still be arranged. Just keep in mind that for used boom truck financing requirements, rates are likely going to be higher than new, down payments higher, and repayment terms shorter. But if you have the ability to acquire a used boom truck at a great price, higher rates and terms may not have a big impact on the purchasing decision.
Its also possible to acquire a truck, modify it with a boom, and put everything together, including the retrofit costs into one loan or leasing facility.
The keys to getting financing are always going to be the strength of the cash flow of the business applying. The stronger the cash flow over time, the more likely financing will be available, and for better rates and terms. It can be more challenging for new businesses to finance boom trucks, especially when the cost increases beyond $50,000. In these situations, the borrower may have to pledge additional security or have a second guarantor sign for the equipment financing commitment.
One of the challenges in the used equipment financing market overall since the start of last recession has been a surplus of equipment available in the used market. For an asset like a boom truck, this may not be the case, especially in a localized market, providing a stronger security value to the lending institution or leasing company to make a financing decision in your favor.
An equipment loan is likely only going to be available for either for established businesses with good credit and cash flow or through a government sponsored equipment financing program that shares the risk with the lender for newer and/or smaller companies that would be viewed as higher risk credit opportunities for the lender processing the application for equipment financing.
Regardless of your situation or requirements or stage in the boom truck acquisition process, we suggest that you give us a call so we can get all your questions answered right away and provide equipment financing options for your immediate consideration.