Heavy Equipment Financing – Used / New Lease Options

Canadian business owners and financial managers are sometimes unaware that used equipment can be financed. There is categorically used heavy equipment financing options available for your business. One of the ironies of financing used heavy equipment is that the type of asset that is being financed often has considerable value versus its original price. Most assets in other categories depreciate much more quickly in value – think cars or computers!

There is a broad range of assets in this category that qualify for excellent rates, terms and structures. Some of the assets in this category of Canadian lease financing are:

Heavy Construction Equipment
Machining assets
Trucks
Backhoes
Concrete Equipt
Bulldozers
Excavators
Scrapers

Other assets are included and can be financed, but these are some of the main ones.

When you are looking to finance equipment of this nature it is important to understand your lease financing options. In most cases, depending on your firms overall credit quality you have a choice of either a full payout capital lease to own or perhaps you might want to consider an operating lease strategy. Under this lease financing option you have use of the equipment, but no intention to own it at the end of the lease. We point out to business clients that this operating lease strategy generally has lower rates and a lower monthly payment, which is appealing to many clients that are striving to save cash flow and working capital for their daily operations.

The best advice we can give clients is to work with someone in this field who has credibility, trust and experience, and who can maximize on the unique benefits of leasing that are important to your firm.

The application process for financing of heavy used equipment is relatively straight forward. Either on your own or with lease advisors assistance you should ensure you have a package that includes a basic credit application, your financial statements, and information on the owners of your firm, who in most cases will be asked to partially or fully be a co lessee on the lease application.

Depending on the nature of the equipment you are financing, and the amount an appraisal might be required, but that works in your favor, as you will have a clear understanding of the true value of your equipment that is being financed.

Financing can normally be approved in a matter of a day or to if you have all the information required, and rates vary with respect to your overall credit quality and the nature and amount of the asset being financed. Once you have obtained an acceptable offer then standard lease documents can be prepared and executed by your firm.

Consider the lease financing options for all manner of new and used heavy equipment – it’s a great cash flow and working capital strategy for growth and profit through the use of assets.
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