5 Advantages of Heavy Truck And Equipment Financing

The equipment-intensive nature of the trucking businesses can easily put significant financials train on anyone. The proper equipment is necessary to get the job done right, and good equipment can cost some serious cash if you decide to pay up front. These front-loaded equipment costs are often an insurmountable obstacle for many would-be businesses - but not always! Here are 5 advantages of semi truck & construction equipment financing that will benefit your bottom line:

Flexibility

Finance companies will often offer payment solutions tailored to your company's specific accounting, cash flow, or tax needs. Financing construction equipment isn't like buying a car; companies know that businesses' income tends to ebb and flow throughout the year, and they're more than willing to work with you on that.

Managed Obsolescence

Technology is moving at breakneck speed, and newer, better equipment is coming out all the time. Leasing your equipment allows you to upgrade it regularly and keep up with industry standards. Knowing this, some financing companies will include trade-up clauses in the lease that will make sure you have what you need when you need it.

Stable Expense Planning

When you buy Heavy trucks and equipment, your expense reports will have tremendous fluctuations in outgoing capital. When you finance, your monthly expenses are more stable, allowing you to better judge what you can and cannot afford.

Depreciation

A full payout lease will allow you to take depreciation on the equipment you're obtaining, meaning that as it goes down in value, you owe less. A lease, on the other hand, will allow you to make lower payments over the time period you're using the equipment. For more information on leases see Carolina Idealease

Disposal

When you no longer need a piece of equipment you own, what do you do with it? You can try to sell it yourself, but if it's too old or worse for wear, what then? Many finance companies are happy to assist with selling and/or disposal of used trucks and equipment, getting the old off your lot to make room for the new.

These are just a few of the many advantages of Heavy truck & equipment financing. If you're interested in learning more, please feel free to contact us at any time; we'd love to hear from you!