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FINANCING HEAVY EQUIPMENT: 5 THINGS TO KNOW

Doing anything for the first time is risky, whether it be getting a new job or founding your very first startup. Financing heavy equipment for the first time is no different. There are so many questions that need to be answered, such as which equipment financing company can you trust, what are the requirements, and how long is the entire process going to take. These are all valid questions to ask if this is your first exposure to equipment financing.

Before you begin your search to find the right financing for heavy equipment here are a few things should know:

Financing Equipment Can Reduce Costs Upfront

Buying the equipment upfront is not always a great idea. You have to take into consideration the amount of money it takes to purchase your heavy equipment, then look at all the other areas of your business that could have benefited from having that money. If you cannot come to the conclusion that this is the best idea, do not go through with it. Buying equipment upfront will only hurt you in the end. Although there are some negative aspects to financing, like being in debt, in the short-term outlook it is possible to be smarter with how you spend your money. read more

equipment financing definition

WHAT IS EQUIPMENT FINANCING AND LEASING?

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When a small business wants to obtain new equipment, there are a couple of different ways to do so. You have the choice to either lease or finance an equipment acquisition.

For many years, the two methods were very different from an accounting standpoint. However, due to recent changes to the Generally Accepted Accounting Standards, financing and leasing are now quite similar. Although the differences are subtle, understanding them allows you to make the best decision when your business needs equipment. read more

EVERGREEN CLAUSES

When you enter into a leasing agreement or other financial contract, it’s crucial to know exactly what you’re signing up for. While an evergreen clause may look standard and harmless, it is a loaded financial tool that can potentially harm your finances.

Protecting yourself and your business from detrimental financial deals begins with getting informed. That’s why we’re discussing what an evergreen clause is and how to examine evergreen contract language before signing on the dotted line.

Read on to learn about evergreen financing and how it affects a business. read more

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