As the owner of a construction company, your one-time purchases for business equipment are larger than most other industries. Equipment financing allows you to obtain the items your company needs without using all its working capital or cash flow at once. The better you prepare yourself to apply for equipment financing, the more likely it is the lender will grant your request. Commercial Capital Finance offers several tips to achieve the most desirable outcome with your equipment financing loan request below.
Choose Heavy Equipment Financing Instead of a Business Line of Credit
Although business lines of credit are convenient, they’re not always the best option when it comes to financing large or heavy equipment like bulldozers and cranes. That is because they can cause you to use up your entire credit line with one purchase. A better option is to apply specifically for equipment financing to ensure you have the full amount of credit available to you that you need. Maintaining positive working capital is essential to meet challenges such as late payments from customers and supply chain issues.
Work with a Finance Company Experienced in Heavy Equipment
Lenders that don’t often work with loan applicants in the construction industry will not understand the need for frequent and large purchases the same way an experienced finance partner will. That means you could lose out on financing opportunities simply because a general lender determines the amounts or frequency of your equipment financing requests to be excessive. Commercial Capital Finance has several years of experience helping construction company owners find the right equipment financing options to meet their needs.
Form a Partnership with your Equipment Financing Lender
You have enough things to keep you busy just by working in the construction industry. The need to find a new lender each time you need to finance construction equipment isn’t a valuable use of your time. When researching lenders, be sure to mention that you’re looking to establish a long-term and mutually satisfying business relationship. Knowing that you can turn to the same lender each time can ease your burdens significantly.
We’re here for you when you’re ready to pursue equipment financing. Please contact Commercial Capital Finance today.