In recent years, a number of large US manufacturers have been pulling their overseas operations back into this country, and some foreign countries are beginning to take interest in investing in manufacturing within the US. This has triggered an increased need for heavy equipment financing since this kind of machinery is essential to the manufacturing industry. Here are some of the best options for heavy equipment financing, and at least one of these should be advantageous for your specific manufacturing business.
Capital leases help equipment owners to keep their machinery and any corresponding debt out of their company books, while also allowing the business to take ownership of that equipment once the lease expires. For industries where manufacturing processes tend to remain static for long periods of time, this is an ideal arrangement.
In other cases, a lease-to-own kind of setup may be more advantageous for a business, because it helps to protect the company against short-term changes in emerging technology. In this kind of arrangement, a company can either keep the equipment at the end of the lease or return it without fear of penalty or additional cost.
Heavy Equipment Financing
It’s always best to work with a lender that is experienced in your particular type of industry because they’re more aware of peripheral costs and expenses associated with the heavy equipment you’re purchasing. This is very important for manufacturing companies because it’s often necessary to finance these additional costs associated with the equipment.
Before choosing a lender to work with, any manufacturer should research a number of lenders to ensure that the provider can offer a certain amount of flexibility when structuring the financing. While interest rates are important, they are not the only factor relevant to heavy equipment financing. Be certain that the structure of your financing is do-able for your business before you commit to heavy equipment financing.
Need heavy equipment financing?
If your company is in need of heavy equipment financing so you can secure the machinery needed for your operations, we may be able to help. Contact us at Safe Harbor Commercial Capital so we can explore some possibilities for supplying you with the funding you need for financing your heavy equipment purchase.