Heavy Equipment Financing Guide

If you need some quality heavy equipment for your construction projects, but don’t think you can afford them, don’t worry! Financing is a great option for getting the equipment you need without having to pay the full cost of the machine up-front. But how do you go about financing your purchase? Bobcat PNW is your premier heavy equipment dealer with several locations in Washington, so we’ve provided this helpful financing guide to help you get started. Keep reading to learn more and if you’ve any questions, be sure to get in touch with us.

Establish a Budget

As with any major purchase, it’s important to create a budget before you start. You’ll want to figure out how much you can realistically spend before looking at financing options. Don’t forget to include the cost of maintenance and repairs when establishing your budget. Also, figure out how high a monthly payment you are willing to spend. Take into consideration your existing income, spending habits, fixed expenses, and emergency funds. You don’t want to get in a situation where it becomes hard for you to manage your monthly expenses.

Types of Loans

One of the main decisions you have to make when financing heavy equipment is what kind of loan you want to take out. Keep in mind that tenure and interest rates will vary, depending on the type of loan, the lender, the loan amount, and your own income and credit score.

You have a few main financing options available. The first is a secured loan. This type of financing features long repayment terms with lower overall rates. However, your equipment will be used as collateral. This means defaulting on your loan will give the lender ownership rights over your machine. On the other hand, an unsecured loan has higher rates, but your heavy equipment will not be used as collateral and the payment terms are also shorter.

Choose a Lending Option

When looking for financing options for your heavy equipment, you can consider banks, credit unions, or dealerships. Rates will vary, depending on your credit score and the amount of loan. Keep in mind that choosing a lender you already have an account with will usually result in lower interest rates. Plus, credit unions tend to give lower rates with a higher total loan amount. It’s always smart to purchase your machines from a local dealer or financial institution you can rely upon.

Are you ready to find the perfect heavy equipment for your job? Call Bobcat PNW today and our team will be happy to discuss various financing options with you. We have six locations in Washington, and we welcome all our patrons visiting us from Auburn and Kent.