A Guide on Financing Heavy Equipment

Heavy equipment isn’t cheap, but it’s a smart investment to make for your business. And one way to get your hands on the machines you need, even if you don’t have the money to pay for them right away, is to look into financing options available to you.

Here is a brief guide on heavy equipment financing so that you can figure out the best funding option for your needs. Tatum Motor Company is your heavy equipment dealer in Anderson, MO, and Tontitown, AR. We also serve those from Fayetteville, AR, and Joplin, MO.

Buy or Rent?

Before acting quickly on the idea of buying a piece of heavy equipment, stop to think if it will pay off in the long run. Sometimes, leasing heavy equipment could be the most favorable option for your business, especially if you will only use it a few times a year.

However, owning your very own heavy equipment adds value to your business, expands your services, increases productivity, and maximizes your profits. So, if you find yourself needing one, or a few, to meet your customer’s demands, then it’s time to look into financing options so you can get your equipment as soon as possible.

Types of Loans

Unsecured loans require no collateral, but their rates are higher and terms shorter. You probably won’t lose your machine if you miss a payment on an unsecured loan, but you could end up dealing with a wage garnishment, lawsuits, or serious dings to your credit score.

Secured loans use the heavy equipment you purchase as collateral if you default on the loan. In other words, your piece of equipment can be repossessed if you fail to make payments. These loans usually have high limits, lower rates, and long repayment terms, and they’re the best option if you need a larger amount of money up-front or if you don’t qualify for an unsecured loan.

Get Your Financial Records Ready

A loan will generally be based on several criteria, such as your financial records and credit history. Therefore, have your business records organized and available before you begin seeking out financing. Sometimes, applications for heavy equipment loans can take weeks to be approved, and the funds likely won’t be available immediately. So, a little bit of patience is required. But the sooner you start and have everything ready, the sooner you’ll be granted the loan.

How To Pay Less

There are some things you can do to make the process of locating and securing a loan much easier. For example, making a larger down payment helps make your payments smaller and reduces the amount of interest you end up paying. Also, it is important to form a budget in advance to determine how much you can realistically afford to pay each month.

If you’re in search of financing options for your heavy equipment purchase, then come to Tatum Motor Company. Visit our dealership in either Anderson, MO or Tontitown, AR, to view our full inventory of heavy equipment for sale and let our staff in our finance department help you in any way possible. We also proudly serve Fayetteville, AR, and Joplin, MO.