If you’re currently in the process of sifting through different equipment financing options and are looking into securing a loan for an essential piece of industrial equipment, you may be wondering what financing advice to follow. Although there may be several myths floating around about financing your equipment, knowing how to separate truth from myth can help you identify the best loans for your company’s needs. Before settling on your desired loan and signing a binding contract, take a moment to check out these three truths and myths you need to know about getting your company’s equipment financed.
1. Myth: You’ll Always Need To Put In a Down Payment
Although you may be under the impression that all loans will require some sort of down payment, the truth is that certain types of loans, or certain lenders, may not require one. Down payments continue to be common in the lending world, but in some cases, you could secure a loan that does not need one. This is sometimes a possibility if:
- You have good creditworthiness.
- You’ve worked with this lender before
- You’re taking out a small loan.
- You’re financing a commercial vehicle.
2. Myth: Not All Types of Equipment Can Get Financing
Fortunately, you’re likely to be able to find financing no matter which industry you’re in. Loans are available for a wide range of equipment types, from commercial to agricultural and more. Some examples of pieces of equipment you could potentially finance include:
- Dump trucks
- Refrigerator trucks
- Commercial automobiles
- Tractors
- Cranes
- Excavators
- Bulldozers
3. Truth: Financing Could Help You Get Bigger and Better Equipment
If you’re seeking to finance your equipment, you should know that this may give you access to bigger and better pieces than if you were to pay in front at the outset. Financing can:
- Allow you to spread out the financial burden into reasonable monthly payments.
- Let you access high-end equipment sooner than you otherwise might.
- Give you the possibility of upgrading to your current industry standard equipment types.
When it comes to truly understanding the ins and outs of equipment financing, it’s important to separate some common myths from the truth. If your company is interested in getting financing for much-needed pieces of equipment soon, you should know that financing can help you access top-notch equipment, that you may not always need to put in a down payment, and that the financing you can access may sometimes depend on your desired type of equipment. Armed with these key facts, you can navigate the financing process for your equipment smoothly.