Used Equipment Financing Options
“We Have Lots Of Good Used Equipment Financing Options Available”
Used equipment financing options can be considerable for certain types of equipment and geographies.
The key is to best align the equipment financing requirement with the proper source of financing.
This is due to the fact that all equipment financing and leasing companies will have their own areas of interest and lending/funding requirements when it comes to used equipment financing opportunties.
So the more closely you align with a lender or leasing companies requirements, the more likely you are to get financing, and at better rates and terms.
Speaking of rates and terms, the newer the asset and the better its condition, the better the options will be with respect to rates and terms.
For instance, assets that have a long useful life and are in good condition are going to be able to financed for a longer period of time than ones that do not have much useful life remaining.
You are also going to have more equipment financing options to choose from for used equipment acquisition when the business and the business owners have strong financial and credit profiles to support the transaction.
A good financial profile will allow you to finance used assets that would not otherwise attract capital due to the equipment financing or leasing company’s confidence in your ability to repay your debts.
At the other end of the spectrum, there are still going to be good used equipment financing options for less than perfect credit or cash flow, but you may have to put more down to complete the deal and the loan or lease term may be for a shorter period of time.
Used Equipment Financing Also Depends On
When you are looking to finance used equipment, an equipment financing or leasing company is going to be interested in the strength of the security that the asset offers to them.
This is going to be determined by the strength of the resale market for that particular type of used equipment.
The stronger the resale market for the asset or assets, the more used equipment financing options that will likely be available to you.
Even with weaker credit and cash flow, used equipment financing can be available at higher rates provided that the lender is very comfortable in both the resale market for the asset and the liquidation pathway they would have to utilize in the event that they had to liquidate the asset to recoup their investment.
So once again, used equipment financing options have everything to do with understanding what you have to work with and then immediately getting in contact with sources of equipment financing that can best meet your requirements.
If you have a used equipment financing need, please give us a call so we can quickly assess your situation and provide used equipment financing options for your consideration