When your business requires expensive heavy machinery to operate, purchasing the equipment outright can impact your cash flow significantly. Even when your business is flush with cash, buying heavy equipment is not necessarily the best financial strategy. Heavy equipment financing (leasing, commercial equipment loans, and private sales and auction financing) is a business solution that lets you secure the machinery you need with customized payment strategies that work for your business. When you need costly equipment or machinery, but also want to strategically manage your company’s cash flow, explore your options for heavy equipment financing.
Heavy Equipment Financing Solutions
Operating a business that relies on costly heavy-duty machinery requires a strategic balance of spending and cash flow maintenance. Heavy equipment financing solutions offer you the ability to secure the machinery you need to operate competitively and profitably with an easy, manageable monthly payment structure. Here are some of your options for heavy equipment financing.
Equipment leasing is a way to acquire the equipment you need to generate revenue without having to purchase your equipment outright. Instead, a leasing partner purchases and maintains ownership of the machinery and leases it to your business at favourable monthly terms. Equipment leasing is an ideal strategy for equipment that tends to become outdated quickly. This allows you to upgrade your equipment at the end of each lease term as necessary. Another benefit is that the lessor assumes the risk of depreciation of the equipment and you can either return the equipment at the end of the term or buy it out at a pre-arranged amount according to your leasing contract.
To learn more about your options for heavy equipment leasing,
read What Type Of Equipment Lease Is Right For Your Business?
Commercial Equipment Loans
Similar to an equipment leasing agreement, commercial equipment loans allow you to access heavy-duty machinery that is critical for your operations with customized and affordable monthly payments. The key difference between a commercial equipment loan and a leasing agreement is that you own the equipment from the outset. Because most heavy equipment can last thousands or even tens of thousands of hours and does not necessarily need to be upgraded every few years, a commercial equipment loan may be the most cost-effective heavy equipment financing solution. The equipment is the asset against which the commercial loan is secured, but once the loan is paid off, your company maintains ownership of the asset.
To find out how commercial business loans can help you grow your business,
read How Calgary Companies Can Use Commercial Equipment Loans To Boost Their Business.
Private Sales Financing
When the heavy-duty equipment your business requires is not available through conventional procurement channels or when optimal pricing is available through a private seller, private sales financing might be the best option for your company. Private sales financing is the best solution when there are limited or no options to finance equipment through an authorized dealer or recognized vendor.
To learn more about the benefits of private sale financing,
read Is It Really Possible To Get Financing For Private Sales?
Businesses can acquire many kinds of equipment including large, heavy-duty agricultural machinery and even manufacturing equipment in new or nearly new condition through auctions. Purchasing equipment at auction can be the most cost-effective way to get what your business needs at a very favourable price. But purchases made at auction are cash only. An auction financing partner can help you secure the cash you need to make large-scale or lot purchases with a strategy to pay back the financing with affordable monthly payments.
For smart tips to get the equipment your business needs at auction,
read How To Be Successful At Heavy Equipment Auctions.
Heavy Equipment Financing Solutions With First Capital Leasing
If you need to replace outdated or damaged equipment, you need critical heavy equipment pieces to launch a new business, or you need specialized machinery to grow your business, equipment financing solutions can save you money and streamline your operations. First Capital Leasing offers customized equipment financing solutions that can be tailored to your company’s needs and budget. Secure the equipment you need without overextending your finances with equipment 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
Q: I already purchased my farm 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.