Whatever industry you are in, obtaining the right equipment makes business success and growth possible. However, purchasing and maintaining such machinery can prove to be a challenge. Here are 7 mistakes many buyers make when acquiring commercial equipment or vehicles, and how to avoid them.
Wherever you are in your journey as a business owner, keeping up with the most advanced technology and equipment can help your company thrive and truly be successful. However, purchasing such equipment can be costly. Luckily, there are other options available.
Acquiring commercial equipment or vehicle financing can help speed up business growth in a way that is both profitable and manageable, and it offers many benefits, including:
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- Preservation of working capital
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- Better control over your cash
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- Lower repair and maintenance costs
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- Reduced up-front costs and ownership risks
- Reduced up-front costs and ownership risks
Fully Customized Commercial Equipment and Vehicle Financing Options
At First Capital Leasing, we have over 85 years of combined experience in the commercial leasing industry and our experienced and highly knowledgeable team has been able to assist thousands of clients across Canada with all their equipment and vehicle needs. We will work closely together with you to create customized leasing options and financing terms that suit your needs and work within your budget.
7 Mistakes to Avoid When Acquiring Commercial Equipment or Vehicles
When it comes to acquiring equipment or vehicles for your business, you want to make sure that you are making informed decisions and getting the right financial products to help your company grow.
To get you started, here are 7 common mistakes to avoid when you are looking to obtain commercial equipment or vehicles:
1. Using Your Cash or Line of Credit
One of the most important things you can do as a business owner is to conserve your capital for unexpected emergencies or invest in revenue-generating investments. By leasing equipment, you will be able to preserve your hard-earned capital and acquire the assets you need with an affordable, tax-deductible payment stream.
2. Using Conventional Bank Lending
If you are looking to invest in your equipment without the need for a capital purchase, using conventional bank lending might not be your best option. This is because bank financing typically encumbers additional security, as well as personal guarantees and general security agreements registered to the business, which may inhibit your future borrowing. Banks can recall their line of credit at any time, which may leave you vulnerable. The average turn-around with bank financing is 2-4 weeks, which may result in opportunity losses of both assets and work.
We Offer Same-Day Approvals
When you opt for our flexible and customized commercial leasing solutions, financing is secured for the term of the lease and our only security is the asset itself. You’ll also enjoy a much faster turnaround time – often it’s same-day approvals.
3. Choosing Vendor and Auction Financing For Convenience
Equipment vendors and auctions sell equipment, not financing. They are simply the middleman and often-times, they use institutions such as ours to have their financing approved at a higher premium. Vendor persuasion is typically stemmed by them receiving a kickback or incentive, which is a premium added to your lease payment. So why not eliminate the middle-man and any unnecessary fees and deal directly with the leasing experts.
4. Applying at Multiple Leasing Companies
Applying to multiple leasing companies to secure the ‘best terms’ can negatively impact how lenders look at your application. Why? Lenders tend to shy away when they see multiple inquiries in a short time frame.
If you are looking for a customized leasing solution at competitive rates, you can trust that our team has the resources to offer you the best available terms and rates from inception.
We Can Accommodate Multiple Suppliers On One Lease
When you work with us, we are able to accommodate multiple suppliers on one lease, so you are not confined to one supplier. Some of the benefits of grouping multiple purchases on one lease include manageable payment and a reduced rate since rates are tiered by the dollar amount spent.
If you are looking for a customized leasing solution at competitive rates, you can trust that our team has the resources to offer you the best available terms and rates from inception.
5. Not Choosing an Experienced Leasing Company
There are endless finance companies that promise to serve you, but many lack the experience and knowledge to serve you with your best interests in mind. All the members of our core team have over 10 years of individual experience, making us experts in all facets of equipment leasing.
This allows for a streamlined process from inception to the end of your lease term. We take great pride in the service we offer and it shows in our long-term customer relationships and repeat business.
6. Sacrificing the Equipment You Truly Require
Don’t let the cash in your bank dictate what equipment you purchase. Equipment leasing gives you the flexibility to spend the additional amount required to obtain the equipment, technology, or vehicle you really need.
7. Not Choosing a Leasing Partner That Can Satisfy All Your Needs
Most financial institutions have stringent restrictions on what can be financed, but we are extremely flexible. No matter the year, hours, or KM of the asset, we have you covered! In addition, whether your seller is an authorized dealer, private sale, auction, Kijiji, or cross-border transaction, we facilitate all your equipment and vehicle needs.
This will give you the confidence and flexibility to purchase the equipment that will best suit your company’s needs and budget.
To find out more about how we can meet all your commercial vehicle and equipment financing needs, and how our team’s experience and knowledge will help you get the best solutions and most competitive rates, contact us at (403) 255-5508 or fill in our online contact form.
