Used Equipment Financing
Providing the best services for clients looking for new or used equipment financing to grow their business
Used Equipment Financing
When you decide to acquire new or used equipment for your business, the right financing can be as important as the right piece of equipment. Charter Capital has been providing the best solutions for used equipment financing for over 40 years. We’ve worked with thousands of clients who’ve acquired financing for used equipment in fields such as construction, manufacturing, transportation, home health, medical, and dental to name a few. However, we can help with any business’s needs.
Here are a few examples of what we’ve helped finance in the past:
- used construction equipment
- used service vehicles
- used printing equipment
- used assembly equipment
- used bottling equipment
- used CNC equipment
- used transportation equipment
- used yellow iron
- used farm equipment
Used equipment is easier to finance than you think. The common misconception is that you can only receive financing options for new equipment. This is not true if you know where to look. Our network is made up of commercial lenders whom we have been working with for over 20 years. We can provide you with various options to help grow your business. Get in touch today and we’d be happy to discuss all the ways we can assist you with used equipment financing.
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.
Advantages of Financing Used Equipment
Cost Efficiency
One of the primary reasons businesses opt to finance used equipment rather than purchasing new is cost efficiency. Used equipment typically comes at a lower price point, allowing businesses to preserve capital or allocate funds to other strategic areas. Financing equipment further reduces the upfront financial burden, making essential tools more accessible and budget-friendly.
Reduced Depreciation
New equipment often depreciates faster than used equipment. By financing used equipment, businesses can avoid the steep initial depreciation that occurs as soon as new equipment is purchased. This slower rate of depreciation helps maintain the equipment’s value over a longer period, making it a smarter financial investment in many cases.
Quicker Acquisition and Installation
The process of acquiring and installing used equipment can be significantly quicker than ordering new equipment, which may have long lead times. Financing used equipment allows businesses to operationalize their investments faster, leading to quicker productivity improvements and return on investment.
Flexibility in Terms
Financing options for used equipment often come with more flexible terms due to the lower financing amounts involved. This can include more negotiable repayment schedules, lower down payments, and the potential for customized financing solutions that better fit a business’s cash flow patterns.
Access to Higher-Quality Equipment
The financing process enables smaller or budget-constrained businesses to access higher-quality equipment that may have been out of reach if purchasing new. This access can significantly improve operational efficiency and output quality, which can lead to better business performance and customer satisfaction.
Sustainability
Choosing used equipment is a more sustainable option as it extends the lifecycle of existing machines and reduces waste and energy consumption associated with manufacturing new equipment. This choice not only supports environmental sustainability but can also align with the corporate responsibility goals of a business.
These advantages demonstrate why financing used equipment can be a great decision for many businesses, blending financial sensibility with strategic resource management.
FAQs About Used Equipment Financing
What credit score is needed for an equipment loan?
Credit requirements can vary by lender, but generally, a credit score of 600 or higher is often sufficient for an equipment financing program. However, better rates and terms are usually available to those with scores above 700.
Is it better to finance equipment or buy outright?
The decision to finance or buy outright depends on your business’s cash flow and financial planning. Financing can help maintain liquidity and spread the cost over time, which can be crucial for managing business operations smoothly. Purchasing equipment outright can put a financial strain on your business.
Are equipment loans easier to get compared to other business loans?
Equipment loans can be easier to obtain than other types of business loans because the equipment itself serves as collateral for the loan. This reduces the risk for lenders and can facilitate the approval process.
Are there tax incentives for buying used equipment?
Yes, buying used equipment can still qualify for tax incentives such as deductions under Section 179 or bonus depreciation. These benefits can significantly lower the net cost of the purchase, making used equipment an attractive option for many businesses.
Applying for Used Heavy Equipment Financing
What documents are needed?
To apply for construction equipment financing, you typically need to provide business financial statements, tax returns, and bank statements. Additionally, details about the equipment, including the purchase agreement or invoice, are essential.
What does an application typically entail?
The application process usually involves submitting the required documents and completing a lender’s application form. The lender will then conduct a credit review and may request additional information about your business and the equipment purchases.
Financing Used Equipment with Charter Capital
Financing used equipment is a strategic choice for many businesses, offering both financial flexibility and potential tax benefits. Understanding the nuances of the application process and the requirements can help businesses better prepare to secure the necessary funding, ensuring they can grow and thrive without overextending financially.
Make affordable monthly payments on a used heavy equipment loan instead of disrupting cash flow with an expensive upfront purchase price. Charter Capital can help you find the best heavy equipment loans or farm equipment financing with manageable monthly payments for your business. Used equipment purchases can significantly affect your cash flow if purchased outright. Charter Capital finds the best equipment financing rates to ensure your annual revenue doesn’t suffer.
Contact us today!