This video was made by Nick Oliva, a Senior Financing Consultant at Beacon Funding. As a consultant, Nick helps his customers realize their dreams of growing their business with used equipment financing. He works diligently to get them approved for financing used equipment they need to grow their business.
The following article is an interview with Nick about how he helps his customers acquire used equipment through fast and hassle-free financing.
When you need affordable funding options for your new or used equipment, Beacon Funding can help! My name is Nick Oliva and I’m a Senior Financing Consultant here at Beacon Funding. We’ve been the leaders in small scale equipment financing in the country since 1990.
In this article...
- Can You Even Finance Used Equipment?
- Case Study: How Used Equipment Financing Works
- Why Should You Consider Financing Used Equipment?
- Tips on Financing Used Equipment
- How Do You Qualify for Used Equipment Financing?
- Interested in Financing Used Equipment?
Can You Even Finance Used Equipment?
I get asked that question quite often. It surprises me because so many people believe it’s difficult to get financing for older or used equipment. But at Beacon Funding, we make it easy to finance both new and used business equipment.
In today’s competitive market, opting for second-hand isn’t just lucrative, but it comes with so many immediate benefits. With over 31 years of industry experience and a vast selection of flexible financing options, see how we can help you find the right financing option to help you buy your next used equipment purchase.
Case Study: How Used Equipment Financing Works
Recently, when I was helping one of my customers acquire three trucks for his business he suddenly needed a fourth added to his fleet.
The problem was a new set of local regulations was about to take effect that would require him to operate an older heavy-duty commercial truck. It would have cost him over $200,000 to replace it brand new.
Equipment financing helped my customer’s unexpected large purchase easier to manage, especially when paying cash would have been impossible.
He found a used truck in great condition that was 9 years old and compliant with the new regulations. With Beacon Funding’s knowledge of his truck’s value and lifespan, we offered him a term of 60 months with an affordable monthly payment.
Now he has the truck he needs and didn’t miss out on generating revenue.
Why Should You Consider Financing Used Equipment?
Who doesn’t want equipment generating revenue for their business? Depending on your situation, you may find more worthwhile value by financing used equipment over new.
Some key benefits to consider:
- Saves Time: Get approved for the funds you need as soon as 24 hours.
- Tax Deductions: Used equipment purchases qualify for a lot of the same major tax deductions as new equipment purchases.
- Keeps Your Business Liquid: When 30% of small businesses fail because of lack of cash, financing helps you conserve your hard-earned savings for when you need it.
- Low Monthly Payment: Manageable low monthly payments that fit your budget.
- Stability during Uncertain Economic Conditions: Even with supply chain shortages and inflated operational expenses, you can keep your costs low by financing used equipment.
Tips on Financing Used Equipment
Nobody wants to make a business decision without proper insight.
To help you get started, here are a few points when considering financing your next used equipment purchase.
- Choose a lender that offers a quick approval and flexible financing options. We specialize in helping start-ups and businesses with challenged credit get approved. With over 31 years of experience, we can offer qualified buyers competitive financing terms compared to traditional lenders and banks.
- Don’t overpay for equipment – look for prices in line with fair market value. It’s often difficult to determine market price for used equipment because it isn’t standardized and lacks comparable pricing from a variety of sellers.
- Lease used equipment that holds value for the life of its lease. When your equipment has a short lifespan and weak re-sale value, it lowers your chances of approval. Obtaining strong, long-lasting equipment will not only be a better investment in the long run but allow you to increase your chances of a more favorable approval in the future.
- Consider your need for maintenance support and warranty coverage. Used equipment may be cheaper, but some dealerships or private-party sellers may not offer the same level of post-sale service or support. Evaluate the kind of ongoing maintenance is required before purchasing used equipment. This will ensure that you have the necessary resources at your disposal if something goes wrong.
How Do You Qualify for Used Equipment Financing?
When you apply for equipment financing, your business is evaluated on these criteria:
- Time in business
- Business pay history
- Personal pay history
- Business cash flow
The condition of the equipment you want to want to finance is also a factor.
The terms you are approved for need to make sense for the equipment’s life and age. Essentially, we can finance lots of used equipment, but we can’t finance just any used equipment. Our goal is to have the financing transaction come to an end while the equipment still operates and produces revenue.
See available options for your next purchase by giving us a call. We’ll help you buy your next used truck with hassle-free equipment financing.
Interested in Financing Used Equipment?
Don’t let unexpected expenses deplete your cash reserves. Beacon Funding’s friendly financing experts are ready to answer your questions about how you can finance your used equipment fast.
Schedule a call today and learn how this can be applied to your business.
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