Industrial Equipment Financing
Working closely with businesses to find the best options for industrial equipment financing
Industrial Equipment Financing
Charter Capital has over 40 years of experience working with businesses to find industrial equipment financing that matches their needs. We believe in working smarter, not harder. With more than 20 lending relationships, we’re certain we can customize our industrial and manufacturing equipment financing structures to match your unique business needs.
Here are a few examples of what we’ve helped finance in the past:
- assembly equipment
- heavy equipment
- warehouse equipment
- construction equipment
- factory equipment
- mining equipment
- distribution equipment
- manufacturing equipment
- transportation equipment
Ready to experience the Charter difference? We’re here to assist in any way possible. Contact us today, and we’d be happy to share all the available options.
Some of our customers...
- Are interested in the lowest rate.
- Are interested in a specific tax treatment.
- Want to avoid breaching existing lending covenants.
- Are interested in the longest term.
- Are interested in getting reimbursed for equipment they have already paid for.
- Want seasonal or other cyclical structures.
- Want to finance software.
- Want to us to give the seller a deposit before the equipment is shipped.
All of our customers want a fair deal at a fair price and no surprises.
Find The Mining Equipment Financing You Need
For companies in the mining industry, obtaining the right mining equipment is the way to grow and increase productivity. The search for mining equipment financing is easier with some insights from those in the financing industry. Read on for tips on how to secure mining equipment financing:
1. Be prepared with a business plan
Presenting a clear and focused plan for your business’ future allows lenders to see you as a risk worth taking.
Lenders will examine your current financial situation based on your credit score, company balance sheets and other financial statements. But a business plan paints a fact-based projection for the future financial health of your company. This helps lenders better understand your business and its trajectory.
According to the Small Business Association, there are four necessary areas to address in your plan:
- The amount of money being requested
- The way your business will allocate these funds
- The plan for repaying the loan
- What happens if you are unable to repay the loan
Displaying a well thought out plan is a step too important to overlook.
2. Understand the risks of leasing mining equipment
When considering the options, some mining and drilling companies consider leasing equipment. While leasing may seem like an ideal solution, there are more pitfalls to leasing businesses often suspect.
In a leasing agreement, you use the machine in exchange for a monthly fee but have no ownership. Typically, when the initial term of the lease ends, the asset ownership converts to you for a nominal fee, usually $1.00.
Before entering into a lease agreement, carefully read the document that pertains to ‘equipment ownership’ and what you must do to advise your leasing company of your intent to purchase the asset when the lease is up. Many lease options are net leases. Be especially wary of net leases as these place a lengthy list of costs on the shoulders of your company. In this case, the property taxes, maintenance costs and other fees will likely be your responsibility.
In our experience, financing is much cleaner and safer than leasing. If you want more detail on this, read leasing vs. financing. Or have your questions answered directly by giving us a call.
3. Explore multiple financing options
A lack of options can leave you feeling trapped financially. Luckily, there are many ways to gain financing for mining equipment. From large commercial banks to investment groups to independent financing agencies, no group has a monopoly on financing. In other words, you have your pick of financing options.
The challenge becomes figuring out which of the choices will work best for your business. Select the ideal financing solution with the help of a commercial finance broker. This professional agency represents you to the commercial finance industry.
After analyzing your company’s financial state, a commercial finance broker advises you on what your financial options are. With a team of experienced financing professionals at your side, you’ll be equipped to make a well-informed decision.
Can I get industrial equipment financing with bad credit?
Securing industrial equipment financing will be difficult with bad credit. Credit scores play a large role in helping lenders determine the risk factor of a company or individual.
Before pursuing financing, consider this advice from our 10 equipment financing tips: Ask yourself if this equipment is an absolute necessity. As Chris Snook states, “Do you really need it? Can you solve your problem another way?” If there is an alternative, pursue that while you build your credit score.
If you need industrial equipment financing and have bad credit, consider out of the box methods of funding. When budgets are tight, business owners must get creative about financing options. Your company may be able to qualify for short term financing options such as a bridge loan until you are able to obtain a more long term financing solution.
For more creative financing ideas, browse these 13 unique financing options.
Industrial and manufacturing equipment can be expensive and hard to acquire if you are a growing business. Most businesses don’t have the extra funds lying around. That’s where we can help. We can assist you in finding the finances you need in order to support growth in your business.
By working with Charter Capital, you’ll build a relationship that will last beyond your financing terms. Chat with us today and discuss how we can assist you with industrial and manufacturing equipment financing.