Heavy equipment is essential to any construction operation, no matter how big or small. If you want to take on new construction projects, you simply must have the necessary equipment to do so. Unfortunately, heavy equipment is rather costly, and purchasing multiple different kinds of machinery at once without getting your business into an unfavourable financial situation can seem nearly impossible.
However, it does not have to be that way; at least not when heavy equipment financing is an option. Heavy equipment financing refers to obtaining a finance package to purchase the equipment you need for your business. After receiving such a loan, you will have to pay it back in periodic payments that include interest and principal for the entirety of a pre-arranged term. In most cases, at the end of that term, you will officially own the equipment.
There are a few common types of heavy equipment financing options that are typically available to choose from, and each type works slightly differently.
Lease-to-own financing makes it possible to lease equipment for a specific amount of time with a predetermined buyout price that you can pay to own the equipment at the end of the term.
Sale-leaseback financing allows you to sell your equipment to a financial institution and lease it back from them to generate working capital.
Operating lease financing allows you to regularly upgrade your equipment and is designed to align with the usage hours and terms that fit your revenue stream.
Whether you are in the early stages of starting a new business or have years of experience under your belt and are looking to scale up, there are many ways that you and your business can benefit from heavy equipment financing. The following are five of the most significant benefits of purchasing heavy equipment in this way:
Heavy equipment financing will provide your business with a cash influx that will allow you to get the equipment you need so that your business can grow now rather than having to wait until you can save up enough money.
Securing a finance package can also make it possible to free up other working capital that can be reinvested into your business via payroll, marketing, and other various needs you may have. Since your access to this capital will be nearly instantaneous, you can significantly minimize downtime, too.
When you finance your heavy equipment, your company can benefit from considerable financial flexibility. Rather than being forced to fork over significant amounts of capital all at once, the payments that you will need to make on a monthly basis are much smaller and are, therefore, easier to manage with cash flow and seasonal changes.
Even in instances where a down payment is required, it is generally quite small. Thus, your business’s cash flow will not be disrupted, and you will have cash left over to maintain your other business expenses.
Another major advantage of heavy equipment financing is that it allows you to obtain the latest and most innovative equipment without having to take on the financial burden that usually comes with purchasing such equipment upfront.
If you wait until you have enough capital saved up to upgrade your equipment, you will likely be waiting quite a while before that is possible. In the meantime, you will be forced to use outdated equipment.
However, financing can make it possible to regularly update your equipment in a more affordable way. Indeed, having such cutting-edge equipment on hand will give your business a competitive advantage.
In most cases, when it comes to heavy equipment financing, you can gain access to terms and conditions that are tailored to your business’s unique project or seasonal needs.
You can discuss your business’s plans and/or limitations with your lending partner, and chances are good that they can modify aspects of your contract, such as the length of the financing term, so that you can increase or decrease your monthly payments. This way, you can guarantee that you will be able to stick to your budget regardless of the loan amount.
When you finance your heavy equipment, you can benefit from a number of significant tax advantages, as the government typically offers incentives to business owners who rent or borrow equipment. In some cases, you can write off the entire cost of your new equipment during the tax year you purchase it.
You may also be able to write off a percentage of the cost of your business’s property if you request a deduction, as your financed equipment depreciates over time.
If you are looking to expand your fleet and want to take advantage of all of the benefits mentioned above, Nors Equipment can help you secure heavy equipment financing in British Columbia.
We offer financing and lease programs on all our new and used equipment, so no matter what your heavy equipment needs are, we have you covered. We would be happy to discuss your business’s unique needs so we can put together some financing solutions that are perfectly suited for you.
We constantly upgrade our inventory to include the latest and greatest heavy equipment from the industry’s top-rated manufacturers, such as Volvo, Madill, Metso, and Sennebogen.
Whether your business is involved in heavy or civil construction, recycling, waste management, mining, or forestry, we have equipment options to meet your needs. We also have the expertise to offer you information and suggestions regarding which equipment may be best suited for your operation.
We provide our valued customers various financing options, including fully protected loans and leases, remarketing program financing, repair and overhaul contracts, and equity refinance programs. Someone from our financing team would be glad to book a consultation with you to discuss which of these options best aligns with the kind of financing you seek.
Our main goals are to keep things as quick and easy as possible for you while maintaining complete transparency. This way, you’ll know exactly how much your payments will be as you pay off your finance package, which is why we give all of our customers access to a comprehensive payments calculator.
For more information about our financing options or to learn more about our heavy equipment, including options for excavator rental and our in-house services, call Nors Equipment at 1-833-730-0613 or contact us here.
Nors
Cranbrook Branch 1032401 Cranbrook Street North
Cranbrook, BC,
V1C-3T3
Nors 12623 Charlie Lake Frontage Road Fort St John, BC V1J 2B0
Nors 1220 Chief Louis Way Kamloops, BC V2H 1J8
Nors 2115 South Wellington Road Nanaimo, BC V9X 1R5
Nors 7411 Riggs Crescent Prince George, BC V2N 0H1
Nors 3830 Sharples Road Terrace, BC V8G 5P8
Nors 10 Lindeman Road Whitehorse, YT Y1A 5Z6
