How Private Sales Financing Can Help Start-Up Businesses Get The Specialty Equipment They Need

How Private Sales Financing Can Help Start-Up Businesses Get The Specialty Equipment They Need

A private party sale is when a company purchases its equipment from a private party instead of a vendor or dealer. This can entail sales through public online platforms as well as through the contact of individuals who make or sell a specific product. Because these are private sales through individuals or businesses, leasing is often not an option. Private sales financing is highly beneficial for companies that need specialty equipment that is not mass-produced or is otherwise difficult to find for purchase. Here are some of the ways private sales financing can help you get the specialty equipment you need.

Benefits Of Private Sales Financing

Private sales financing is when a company loans you money to aid in the purchase of equipment from a private sale. This is highly beneficial for start-up businesses that may not have enough revenue to purchase their equipment outright but who can’t find rare or specialty equipment from a vendor that offers leasing. Here are some ways private sales leasing can help you procure the equipment your start-up needs.

Find Specialty Equipment
When your start-up needs specialty equipment, you may not be able to find what you need through regular equipment manufacturing companies. It may also be difficult to find this equipment new and you may need to look at secondhand markets, depending on the type of business you are running. Sometimes specialty equipment is found through an overseas vendor. When your business needs specialty equipment you may require a private sale to get the specific equipment or to get it at the best price. Without private sales financing, purchasing this equipment can seem like a huge financial risk, but it is a necessary purchase to kick-start your business.

Have Available Cash Flow
Purchasing equipment outright can be very expensive. This limits the amount of cash flow available for other necessities such as marketing, payroll, office supplies, insurance, taxes, and more. For new businesses, having this cash tied up in the purchase of equipment can be detrimental, as the business is not yet generating enough revenue to cover all company expenses. With private sales financing, you can retain your working capital while purchasing the specialized equipment you need from a private sale.

Purchase Equipment Before Competitors Do
When you’re searching for specialty equipment that is difficult to source, your business may be in competition with other businesses also searching for equipment with limited availability. The more niche your equipment is, the more competition there will be to get the equipment you hope to purchase. This requires fast action so that you can purchase the equipment before it is off the market. When you have a private sales financing partner, you can receive a quote and be pre-approved for a financing plan so that you can have the available financing for a quick purchase.

Sale-Leaseback Options
Another option for the fast purchase of equipment is a sale-leaseback. This is when you purchase the equipment using your own money, but then you sell the equipment to a leasing partner for them to lease back to you. This gives you the opportunity to buy the specialty equipment you need immediately but then still have the liquid capital to cover other company expenses. 

Private Sales Financing

When you need high-priced, specialty equipment, don’t use up a large portion of your working capital. With private sales financing from First Capital Leasing, you can get the equipment you need while still retaining cash flow. When you partner with First Capital Leasing, we act as the go-between for you and the seller, using our experience and expertise to finalize the sale as quickly, simply, and securely as possible. We work with you to get to know your company so that we can develop a pricing plan that will work for you, giving you the freedom to have the available cash flow your business needs while making reasonable payments for your specialty equipment. To finance a private sale, contact First Capital Leasing at 1-888-251-3644 or fill out the online contact form.

FAQ

Q: How do I apply?
A: We have an easy-to-navigate application process. Apply Here. And once you have applied, there is no need to apply again as we keep you on record and we will continue to partner with you for all your business financing needs. At FCL, we offer approval in 4 hours or less.

Q: If my company is not based in Calgary or Alberta can I still use First Capital for private sales financing?
A: Yes, while First Capital is based out of Calgary, our commercial leasing services are not limited to Calgary or Alberta.

Q: Will First Capital Leasing perform a lien check on the specialty equipment I need?
A: Yes, First Capital Leasing takes care of equipment comparables and lien searches, to ensure that no liens are encumbered on assets.

What Our Clients Are Saying

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We'd love to have the opportunity to understand your business and develop a strategy customized to your business' short-term needs and long-term goals.  We boast a 95% approval rate through our vast network of underwriters (including a robust private portfolio).   
Contact us at 1-888-251-3644 or complete the online contact form below. We look forward to connecting with you.

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