Heavy equipment often comes with a heavy price tag. Depending on the type of equipment you need to could cost anywhere from $10,000 to well over $100,000 to meet your business’s needs. Rather than dumping all of your businesses savings into a heavy equipment purchase all at one, a Heavy Equipment Loan can allow you to pay for it over time.
Heavy equipment loans are designed for construction companies to make large equipment purchases with little to no money down. Depending on your businesses credit rating a Heavy Equipment Loan could have an interest rate as low as 3%. The better your credit history, the lower your interest rate will be. This also determines the amount of money you will need to put down on the loan.
This form of loan holds a lien on the equipment until it is paid in full. Failure to make the minimum monthly payments on the loan will result in the equipment being repossessed and sold to cover the cost of the loan. At the end of the loan term your business holds full ownership of the equipment which can then be used for trade in value on new equipment or as a form of collateral on other financing needs.
Chris Fuller went to the University of South Florida and has worked in the financial sector for over 20 years. He has extensive experience in all aspects of personal and small business lending, from personal loans, equipment finance to cash flow based solutions for small mom and pop businesses, and large corporations.
