Heavy-duty equipment can be hard to source, and sometimes the option to purchase through a recognized vendor just doesn’t exist. Often, the most cost-effective way to secure the heavy machinery your business needs to maintain and grow operations is through a private seller. But many business owners cannot afford the capital expense of purchasing the equipment outright when buying from a private seller. Private Sales Financing is a smart business solution that lets you secure the heavy machinery you need with customized payment strategies that work for you. When there are limited or no options to finance equipment through an authorized dealer or recognized vendor, private sales financing with a trusted financing partner can save you from having to make a large cash purchase that ties up your working capital. Note that when purchasing expensive equipment from a private seller, you should be aware of certain risks that don’t exist when buying from a recognized dealer. Here are some important considerations when purchasing heavy equipment through private sales.
Tips For Purchasing Heavy Equipment Through A Private Sale
Tip #1: Inspect The Condition
Before you agree to the purchase, ensure that the equipment is in working condition. This seems like it should be obvious, but it goes beyond starting it up and making sure it runs. If you have in-depth knowledge of how the equipment works, do a thorough inspection of all working parts, take it for a test run if possible, confirm operating hours, and ask for maintenance and repair records. If you are not familiar with the machinery, have a mechanic or an experienced operator accompany you and assist you with the inspection or take it directly to the pros. Often, equipment that is purchased through private sales will not have a warranty or a money-back guarantee. Make sure you are comfortable with the costs of any repairs needed and with the risk of purchasing used equipment from a private seller.
Tip # 2: Ensure The Title Is Clear
If you don’t make sure the title is clear of liens (from a finance company or bank), you could be liable if the seller defaults on their outstanding payments. That lender is legally entitled to repossess the machinery to collect monies owed. You should also verify that the seller is the registered owner of the equipment by having your local police department or a private service provider run the serial number and confirm the machinery is not stolen.
Tip #3: Choose The Right Financing Partner
Once you have found the right equipment at the best price, you need to choose the right private sales financing solution and financing partner. The most ideal financing partner will offer customized and flexible payment strategies, facilitate the purchasing process by working directly with the seller, pull title and offer due diligence to protect your investment, and be able to move quickly to provide the funds for the private sale.
To learn more about the benefits of private sale financing,
read Is It Really Possible To Get Financing For Private Sales?.
BONUS TIP: Auction Financing
Did you know that auctions are another great source to find the heavy machinery your business needs at affordable prices? Auction Financing is a way to secure funding for hard-to-find equipment, and new or almost-new machinery is often available for immediate purchase. Learn more about Auction Financing and How It Can Help Your Business.
For smart tips to get the equipment your business needs at auction,
read How To Be Successful At Heavy Equipment Auctions.
Private Sales Financing Solutions With First Capital Leasing
When the best deal on the heavy-duty equipment your business needs to thrive or expand is available through a private seller, consider your options for private sales financing through a trusted financing partner. First Capital Leasing offers customized private sales financing solutions that can be tailored to your company’s needs and budget. Secure the heavy machinery your business needs without overextending your finances with private sales financing at First Capital Leasing.
First Capital Leasing is a full-scope financial services provider with the knowledge and experience to create tailored financing solutions that meet your needs and your goals for your company. We can help you figure out which strategy can support your current operations now and in the future. We are based in Calgary, but serve businesses across Canada. For easy application and quick approval, fill out our online application. You only need to apply once and First Capital leasing will continue to be your financing partner for all your business equipment needs. Approval can usually be completed in less than 4 hours!* If you are ready to explore loans and leasing for your business, call our team at First Capital Leasing at 1-888-251-3644 or fill out our contact form today.
* Subject to credit approval
FAQ
Q: I already purchased my heavy-duty equipment and now I wish I had leased it. What can I do?
A: First Capital Leasing offers sale-leaseback plans. You sell the equipment you own to us, and we lease it back to you at competitive rates. This frees up significant working capital that can be invested in expanding your business. To learn more about a sale-leaseback strategy, read Is A Sale-Leaseback The Right Choice For My Business?.
Q: How does my business explore private sales financing with First Capital?
A: Our process is simple:
- Choose the equipment and the seller of your choice. Confirm the full asset details, along with the cost.
- Complete our online application, which is instantly submitted to our credit team. Existing customers do not need to re-apply.
- Once approved, a First Capital team member will contact you to discuss your financing options. We will then contact your supplier to arrange for invoicing of the purchase. Documentation is then provided for your review.
- Upon receipt of all required documentation, our funding team will work on payment remittal to the supplier. We can accommodate any prepayment or deposit terms the seller requires.
If you have any questions or need more information about which First Capital financial solutions might be right for you, call us at 1-888-251-3644 or fill out our contact form today.
Q: I need a piece of highly specialized equipment. I found it for sale at an upcoming auction. Is there a financing solution for this?
A: First Capital Leasing offers auction financing. With our simple application process, you can be pre-approved prior to auction day so you are ready to bid. Just provide our expert team with the details of the equipment you wish to purchase and we can guide and support you every step of the way. To learn more, read How Auction Financing Can Get You The Equipment You Need.