We are often asked if we provide loans and leases for used equipment and machinery. The answer is yes we do. Used equipment can be a valuable asset to your manufacturing facility, especially if the particular type of machinery has a low obsolescence rate. Many of our clients find that purchasing used equipment is not only cost effective but comes with added benefits.
For instance you can often purchase two pieces of used machinery for the price of one new component. This strategy can greatly increase the productivity of your manufacturing facility while containing costs.
Another benefit of financing used equipment is that often you can get machinery that conforms to your end use requirements. The vast majority of used equipment being sold is because the machinery no longer serves the current owners needs. In most cases you are allowed full inspection.
Availability can be a game changer for many facilities. Can you wait for a new machine to be delivered and setup? Anyone with experience in purchasing new equipment knows that the estimated delivery date is often wishful thinking. Used equipment can be arranged to be rigged up and on it’s way once your financing is approved.
Fast Funding
We can turn around your application in 2 hours and in certain cases have funding to you in 24 to 48 hours.
Advantages Used Equipment – Machinery
- Availability and Immediate Use
- Full Inspection
- Usage and Cost
- Increased Productivity
We offer Accurate Valuation of Older Equipment
Once you have chosen your desired equipment, we offer accurate valuation for that equipment. With an accurate valuation the correct and fair price for the used machinery and equipment you are financing is determined. The growth and success of a business relies on its machinery to deliver the final products to consumers, we can give you the information you need in order to make the best investment. We want to be your partner for all of your equipment financing needs today and in the future.[/fusion_text]
Types of Used Machinery and Equipment Financing
The types of loans we offer for used equipment financing are similar to the loans we offer for new equipment financing. We offer two types of loans: Fixed Rate and Variable Rate. We can help you understand the differences between the two and structure a loan package that fits your needs.
- Fixed Loan Rate: Throughout the lifespan of the loan it has a fixed rate of interest. With this type of loan, the principal and interest paid changes each month, but the total amount of payment won’t change.The advantage for this type of loan is that it makes it easier to budget for your business because of the set price for each payment. For business owners that are new to loans, this will be a simpler approach in financing for your business. The main disadvantage of this type of loan is that the set amount might be too high for some business owners. Since it is constant throughout the loan, you cannot enjoy lower interest rates during the initial stage of the loan. It will also be harder to qualify because of the higher cost of each payment.
* Please discuss this strategy with your accountant.
- Variable Loan Rate: Variable Rate Loans are also known as “Floating Rate Loans” and “Adjustable Rate Loans”. This is a more complex type of loan because the interest rate varies as the loan progresses. Initially, the interest rate would be set to a value that is lower than a comparable fixed-rate loan. A specific time limit would be set wherein the interest rate would stay the same. After which, the interest rate increases at an agreed value. At the latter stages of the loan, the interest rate will eventually be higher than the comparable fixed-rate value. The main advantage of using this type of loan to purchase used equipment is that you can enjoy lower interest rates at first. The low initial costs also make qualifying for the loan easier. You can avail of larger equipment packages with this type loan. The disadvantage for this loan is that interest rates can rise. The interest rate increases over time.
* Please discuss this strategy with your accountant.
Used Equipment and Machinery Loans
- Up to 5 Years Financing
- 100% Financing
- Little to No Up-Front Costs