In the fast-paced towing industry, affording equipment to scale your business can be challenging. Equipment financing is a cost-effective solution that allow you to easily add expensive tow trucks into your fleet. With low monthly payments, you can afford the equipment you need to enable growth and expansion.
Plus, specialized lenders, like Beacon Funding, offer flexible financing options. These financing plans are customized to help you overcome critical challenges like seasonal revenue, decreasing upfront costs, and more. See the six different flexible financing plans that can help your business grow without straining your wallet here.
One such innovative solution available to Beacon Funding customers is wrap financing. This innovative financing option allows businesses to leverage existing equity on currently financed equipment, enhancing buying power without straining your budget. To put it simply, if you have an existing lease that you are currently paying off and are looking to add more equipment to your business, then this one is for you!
In this article...
- Understanding Wrap Payments and Flexible Financing
- Wrap Financing Case Study
- Choosing The Right Financing Option
- Tips for Successful Financing in 2024
This article explores the intricacies of wrap financing through a real-life case study. Learn how Beacon Funding’s wrap financing plan helped a towing company:
- Acquire multiple trucks with just a single lease payment to meet urgent expansion needs.
- Overcome unfavorable credit terms due to some sloppy payment history and an outstanding $650,000 in tax liens.
- Secure funding approval for a new 35-ton heavy wrecker purchase, overcoming challenges that other lenders wouldn't entertain.
TAKE ME TO THE CASE STUDY
Understanding Wrap Payments and Flexible Financing
What is flexible financing?
Before we explore wrap financing, let's understand the concept of flexible financing. It ties into your business’s need to be flexible and expand.
Flexible financing is a custom financial strategy that adapts to the unique needs of businesses, providing a tailored approach to funding your equipment. Beacon Funding offers flexible equipment financing plans, ensuring a financial strategy aligned with your business growth goals.
Check out our video which explains our flexible equipment financing plans in detail.
Wrap Financing in Action!
What is wrap financing? Current Beacon Funding customers can take advantage of wrap financing to obtain equipment that is otherwise too difficult to finance by leveraging the existing equity in equipment they are currently financing. This product solves a common problem for many growing businesses.
Why use wrap financing? If a business currently leases from Beacon Funding and wants to expand with more equipment, a wrap lease is a great option. This allows businesses to use the equity from their existing lease to secure better terms on additional equipment, making it more accessible for growth.
By leveraging existing equity, businesses can use wrap financing to secure more favorable terms, ensuring sustainable growth without a hefty financial burden.
How do I get wrap financing?
Business owners, who have an active equipment financing lease, can benefit from wrap financing. Navigating the intricacies of wrap financing requires expertise. Talk to a top-rated equipment financing lender, like Beacon Funding, who specializes in wrap financing plans.
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Wrap Financing Case Study
The Problem
A towing business urgently needed to expand its fleet with the purchase of an expensive truck. Despite already having a deal with Beacon Funding in 2019, the customer was faced with unfavorable credit terms due to some sloppy payment history and an outstanding $650,000 in tax liens. Financing the truck also became difficult because of the high cost associated to a 35-ton Mack CL713 heavy wrecker.
The Solution
Beacon Funding provided a wrap payment plan. By leveraging equity from the 2019 deal to finance a used Mack CL713, Beacon Funding secured approval for a new 35-ton heavy wrecker purchase when other lenders wouldn't entertain the request.
The Results
The towing company successfully acquired a new 35-ton heavy wrecker with $335,569 in financing. The business was able to leverage the equity from their existing lease to qualify for a 45-month term payment plan. Despite having a risky credit profile, wrap financing helped them overcome their challenges to acquire the Mack truck they needed.
Choosing the Right Financing Option
Tailoring Financing to Towing Business Needs
Selecting the right financing option is crucial for the towing industry. Working with an industry leader like Beacon Funding ensures that financing plans are tailored to the unique needs of the towing business, paving the way for sustainable growth.
Benefits of Customized Financing Plans
Customized financing plans provide numerous benefits, including improved cash flow management, reduced financial strain, and the flexibility to adapt to changing business conditions. Watch how a getting a flexible financing plan catered to your needs can give you an edge up.
Tips for Successful Financing in 2024
As we navigate the financial landscape of 2024, staying informed about industry-specific financial resources is paramount. Beacon Funding, for instance, evaluates various factors, including your start-up business plan, personal credit history, equipment being financed, and your industry experience.
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