Purchasing Options

Leasing

When you lease heavy machinery you make monthly payments to the owner of the machinery in exchange for using it. This is a practical option is you do not have a down payment or you do not want to put anything up for collateral. There are many benefits to leasing heavy equipment including maintenance coverage, easy upgrades, improved cash flow, and tax deductions.

Loans

If you plan on being in business for a long time and the equipment you need won’t become obsolete quickly than a loan may be right for you. Loans are good for businesses that have a large amount of capital available for a down payment or collateral they are willing to put up like a house, other heavy machinery or other valuable property. When buying machinery with a loan it is important to factor in repair and maintenance costs because unlike leasing, you will be responsible for repair and maintenance.

Auction

Whether you plan on leasing or taking out a loan to purchase heavy machinery you may want to consider purchasing it from an auction. Many auctions are now online and give buyers quite a few advantages. You can easily search for specific, specialized machinery and compare the machinery you want to buy with several other units available for sale. You can also look at machinery all over the world without having to travel to look at it. Many auctions include pictures and very specific descriptions of the machinery. Time spent on buying machinery can be cut down drastically when you don’t have to travel to check it out.
Another advantage of online auction is that many auctions allow you to automatically increase your bid over any counter bid up to the maximum amount you want to spend. This means you don’t even have to wait by the computer to bid on what you want. After the sale is completed the auction company will generally take care of the details including transfer of funds and titles and transportation arrangements. Auctions provide a convenient and speedy way to purchase needed heavy machinery.

The top 5 pieces of heavy machinery

1. Skid-steer loader

The skid-steer loader is the most popular unit of heavy machinery on the market today. It is considered to be the most popular because it is the largest unit of heavy machinery sold and more skid-steer loaders are currently in operation than any other unit of heavy machinery. They are easy to maintain, cheap to buy and they are efficient on fuel use. Skid-steer loaders are sometimes used instead of a large excavator by digging a hole from the inside. The first thing a skid-steer loader digs a ramp then uses the ramp to carry material out of the hole. This is very useful when construction includes digging under a structure with existing structures overhead.

2. Bulldozer

Bulldozers are the next most popular unit of heavy equipment because they can be used for many different operations. They are used in road construction, land clearing, commercial and industrial development, dam building and agriculture. Bulldozers are capable of pushing large quantities of soil, rocks, sand and rubble.

3. Mobile Cranes

Mobile cranes are essential to almost all construction sites. They are used to transport heavy loads throughout the construction site. There are many types of mobile cranes including the truck-mounted crane, rough terrain crane, floating crane and crawler crane.

4. Excavator

Also known as a back, an excavator is used for digging and for moving large amounts of soil. The excavator has a two-part articulated arm with a digging bucket attached to the end so it is widely used on construction sites for all sorts of purposes. Some excavator uses include digging trenches, mining, river dredging, forestry work, material handling, demolition, and heavy lifting.

5. Wheel tractor-scraper

The wheel tractor-scraper is used for earthmoving. It is commonly used in work sites like mines because they are very efficient for moving material back and forth quickly.

Heavy Equipment Manufacturers and Providers

Cat Heavy Equipment www.cat.com

Cat Heavy Equipment provides numerous forms of heavy equipment including units like hydraulic excavators, articulated trucks, wheel dozers and many others. Cat Heavy Equipment also provides protection on many of their units. The Tier 4 Equipment Protection Plan includes no-cost powertrain coverage for three years of 5,000 hours.

Rock & Dirt – The Equipment Marketplace rockanddirt.com/equipment-for-sale

Rock & Dirt- The Equipment Marketplace  offers new and used heavy equipment for sale and rental. They have been selling heavy equipment since 1950 and they offer over 75 different types of heavy equipment.

Hertz Equipment Rental hertzequipment.com

Hertz Equipment Rental has a very large range of heavy equipment. The have options for sale and rental of their heavy equipment units. Hertz Equipment Rental provides online options to help customers manage their accounts online making it easier to purchase heavy equipment.

Iron Planet ironplanet.com/

Iron Planet sells heavy equipment online. They are the leading online marketplace for used heavy equipment. Iron Planet sells heavy equipment units for construction needs, agriculture needs and much more. Iron Planet is backed by Accel Partners, Kleiner Perkins Caulfield Byers, Caterpillar, Komatsu and Volvo.

AuctionTime.com auctiontime.com

AuctionTime.com is an online auction company. They bring together buyers and sellers and help move machinery at affordable rates. There are no buyers fees ever and sellers pay a low flat fee. They provide access to listings twenty-four hours a day, seven days a week and anywhere in the world.

When you have heavy equipment leasing and financing needs you must know where to turn. As you know, your business is not going to operate efficiently if you don’t have the right equipment. Although you may be worried about buying or leasing the proper heavy equipment, with the right strategy you can get what you need in order to take your business to the next level.

Many businesses prefer to lease.

Due to the high cost of equipment you will find that many businesses opt to lease rather than purchase outright. The lease process is generally straightforward and simple to understand. On top of this, there are flexible payment options that allow you to get what you need without making too many changes to your current financial structure.

No matter what type of heavy equipment you are interested in, make sure you calculate your monthly payment before signing on the dotted line. You want to make sure that you are actually saving money when compared to the cost of buying.

Note: when you lease heavy equipment, instead of buying, you can trade it back in at the end of the contract. At this point, your obligation is fulfilled and you can once again decide how to best move forward.

Are there any benefits of buying heavy equipment?

The main benefit is the fact that you can actually own the equipment once your payments are complete. This means that you may be able to get everything you need for your business, pay it off, and never again have to make a payment.

If you have any interest in taking out a loan for the purchase of heavy equipment it is important to know the exact terms and conditions. How long do you have to pay back the loan? What is the interest rate? What is your monthly payment?

Businesses that are required to use heavy equipment often times worry about the finances involved with getting everything they need. Fortunately, you can consider both leasing and buying.

Leasing Benefits

• Lower monthly payment
• Easier to get all the equipment you need
• New equipment more often

Buying Benefits

• You can eventually own the equipment
• Don’t have to worry about trading the equipment in at the end of the lease term

Are you more interested in heavy equipment leasing or a heavy equipment loan? Contact us now!

Equipment Loans are Powerful

Along with computers, there are other types of related equipment that are commonly used by companies in a variety of industries.

Although the cost of computer equipment is decreasing, this does not mean that you will have enough cash to purchase everything you need. Additionally, you never know when the time will come to purchase/lease new equipment during an expansion phase.

When you compare leasing computer equipment to buying you will realize that there are advantages and disadvantages of both.

Benefits of Leasing

• Lower upfront cost
• New equipment more often
• Your equipment will always be up to date
• Predetermined monthly expense that never changes
• Keep up with your competition

Downside of Leasing

• You may end up paying more in the long run
• You are required to keep paying for the equipment, even if you stop using it

Benefits of Buying

• Easier than leasing – less paperwork required
• You make all the decisions in terms of maintenance
• All of your equipment is tax deductible

Downside of Buying

• The initial cost of buying new computer equipment may be too much at the present time
• You will eventually be stuck with outdated equipment

As you can see, there are pros and cons to both options. The only way to make an informed decision is to carefully compare the many details of leasing and buying. At some point, you may realize that one strategy better fits your company from a financial standpoint.

Questions to ask before Leasing

Most people are aware of what goes into buying new computer equipment. However, leasing is a bit more complicated. Here are several questions to ask:

• Is there a buyout option at the end of the lease?
• What type of lease are you signing – an operating lease or a capital lease?
• How long does the lease last?
• Can I terminate the lease early? What happens if I do?
• Can I add new equipment to an existing lease in the future?

When you ask these questions, while also considering the pros and cons detailed above, you will be armed with the information necessary to decide between purchasing or leasing computer equipment.

When it comes time to get the right restaurant equipment you have two options: leasing or buying. Both of these options have pros and cons. Some restaurant owners only lease their equipment. Others swear by the benefits of buying. And of course, there are some who do a little bit of both.

Leasing Benefits

There are many benefits of leasing restaurant equipment:

• You don’t have to put out as much money upfront
• Lower monthly payments
• You only have to keep the equipment until your lease term expires
• Once you trade in your old equipment you can upgrade to the latest and greatest that the industry has to offer

Buying Benefits

Would you rather take out a loan to purchase restaurant equipment?

There are benefits of doing so:

• Once the equipment is paid off you own it, free and clear
• You don’t have to worry about lease terms and conditions that are often times unclear

Before you sign on the dotted line, you should compare the benefits of restaurant equipment leasing to buying.

When it comes to buying equipment, you need to ask yourself this question: are you going to do so with cash or will you finance the purchase? The answer could help you make a more informed decision.

Every year, thousands upon thousands of new restaurants open in the United States. Along with this, those who are already in the business are looking to upgrade their equipment.

Don’t try to get by without the right equipment – this will only make things more difficult in an already competitive industry. Instead, compare the pros and cons of restaurant equipment leasing and buying. In the end, you will know which option is best for you and the goals you have set for your restaurant.

Loans for your Farm Equipment

Although many people lump “farm equipment leasing and loans” into one category, these are two entirely different approaches.

When you lease farm equipment you are doing nothing more than paying the lessor for the use of the asset.

When you take out a loan, though, you are paying a little bit every month so that you can eventually own the equipment in the end.

There are pros and cons to both approaches.

If you are confused and unsure of which option is better, here are five questions to ask yourself.

1. Do I have enough upfront cash for a down payment? This is often times required if you are interested in buying farm equipment.
2. Can I make the purchase with cash? If you have enough money to buy the equipment outright it could be advantageous in the long run. Not only are you gaining full ownership of the equipment from the start, but you are avoiding interest payments.
3. What are the terms of the loan that is being offered to me? This includes everything from the interest rate to the amount of time you have to pay back the money.
4. Can I save money every month by opting for a lease? Generally speaking, lease payments are smaller than loan payments. This may be an important detail if you are trying to keep your expenses under control.
5. Will you want to trade in your farm equipment in the future? With a lease, once the term runs out you can turn the equipment in and walk away. At this point, you can opt to deal with the same company and sign another lease agreement for updated equipment.

When you answer these five questions you will find it easier to decide between leasing farm equipment and taking out a loan.

Regardless of which option you choose, it is important that you focus on two things:

1. Getting the equipment necessary to keep your farm running at optimal efficiency.
2. Making sure that you are 100 percent comfortable with the financial side of the deal.

We have helped people get farm equipment loans for:

• Tractors or Mowers
• Seeders
• Planters
• Drills
• Pumps
• Mulchers
• Transplanters
• Fertilizers
• Balers
• Combines
• Chisel Plows
• Cotton Pickers
• Seed Drills
• Sprayers
• Harvesters
• Tillers
• Rollers
• And much more…

Contact us using the form to the right and we will find the best financing option for your farm.