This dilemma is not necessarily limited to the start-up business owner either. Established construction businesses are discovering that their bank or
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.
This is good news for start-up construction and trucking companies because they can often qualify for the more relaxed
The terms will often include:
2. Relaxed number of payments and last-security deposits. Often requiring only the first month payment, rather than the typical first and last payment and a security deposit. This is a great benefit to a new business with challenged cashflow.
3. Relaxed down payment. Often requiring no down payment. Again, a significant benefit to the new business owner who is trying to launch a business with limited cash.
4. Relaxed lease term. Often offering extended terms of as much as 60 months. This lowers the monthly payments for the new business owner.
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