New business owners need vital equipment such as trucks, trailers, backhoe, graders, excavators, etc., etc., but find that they cannot be eligible for financing.
Although new business owners have a job that lines or contracts in a place that will generate income to make payments, that new business owners get financing.
This dilemma is not necessarily limited to start-up business owners. The established construction business found that their bank or financial company declined to make all important loans. The reason? Recent impacts from the chaos of housing sub-prime loans have migrated to the business community. Banks tightened the micro loans they did with regularity.
So, what’s new or even the construction business owner and transportation trucks done to critically need heavy equipment rental financing?
A solution: Check the rental equipment that is passed by the rental financing company in their inventory. There are hundreds of qualified heavy equipment in the off-rental status owned by heavy equipment leasing companies. This is a quality equipment that is returned to the lessor at the end of the time or default.
Why is this good for new construction / truck companies? Rent financing companies do not want this equipment in the book. Every equipment is left in the off-rental status spending their money. Thus, they offer far better requirements to buyers.
It is good news for construction companies and novice trucks because they can often qualify for more relaxed financing terms offered by leasing financing companies with advantages of inventory.
Provisions will often include:
1. Credit score relaxed. Often financing scores under 600 FICO.
2. The amount of payment is relaxed and the last guarantee deposit. Often it only requires the first month payment, rather than the first and final typical payments and deposit. This is a big benefit for new businesses with challenged cash flows.
3. Relaxing payment. Often don’t need a down payment. Again, significant benefits for new business owners who are trying to launch a business with limited cash.
4. Relaxing rental period. Often offering extended requirements as many as 60 months. This lowers monthly payments for new business owners.
5. Relaxing residue. Often offers 20% of the remaining financing. It also reduces the number of monthly payments.
6. Relaxing time-in-business requirements. Often offers financing to new business owners without tib.
7. Types of relaxed business organizations. Often offers financing to a single owner. No need to be held as LLC or inserted.
Depending on the type and age of the equipment, the lessor can offer warranty programs for equipment too.
While this is all significant benefits for construction / truck start up companies, equipment will often be located in a far city to business owners. It will require the owner to travel to the location to see equipment. If purchased, the owner must arrange transportation equipment. Some lessors will arrange shipping and fold shipping costs to rental financing as soft costs.