Equipment Leasing

Often a new start-up construction business owner discovers that he/she cannot qualify for lease-financing for the Heavy Equipment needed for their new business.

The new business owner needs a vital piece of equipment such as truck, a trailer, a backhoe, a grader, an excavator, etc., etc, but discovers that they cannot qualify for the financing.

Even though the new business owner has jobs lined up or contracts in place that will generate revenue to make the payments, that new business owner gets denied financing.

This dilemma is not necessarily limited to the start-up business owner either. Established construction businesses are discovering that their bank or finance company is declining to make that all important loan. The reason? The recent impact of the residential sub-prime loan comparison has migrated to the business community. Banks are tightening up on the micro-loans that they used to make with regularity.

So, what is the new or even the established construction business and trucking business owners do to get critically needed heavy equipment lease-financing?

A solution: Check out off-lease equipment that Lease-financing Companies have in their inventory. There are literally hundreds of pieces of quality used pieces of heavy equipment in off-lease status that are owned by heavy equipment leasing companies. This is quality equipment that was returned to the lessor at end of term or for default.

Why is this good for the start-up construction/trucking company? The lease-financing companies do not want this equipment on the books. Every piece of equipment that remains in an off-lease status is costing them money. As such, they offer much better terms to a buyer.

Depending on the type and age of the equipment, the lessor may offer warranty programs for the equipment as well.

While these are all significant benefits for the start up construction/trucking company, the equipment will often be located in a city remote to the business owner. This will require the owner to travel to the location to see the equipment. If purchased, the owner will have to arrange for transportation of the equipment. Some lessors will arrange shipping and fold the cost of shipping into the lease-financing as a soft cost.

In summary, start-up construction and trucking company’s do have an alternative when they do not qualify for conventional lease-financing or their bank had to say no to their heavy equipment financing request