How To Finance Heavy Equipment

From construction to agriculture, excavators to tractors, heavy equipment is an invaluable tool in large projects. As expensive as they are, though, financing can help make your budget more manageable. We here at Desert Greens Equipment want you to get the tools you need when you need them for a good price, so we’ve put together some tips for how to finance heavy equipment below.To talk to our financing experts, or to see the heavy equipment we have for sale, contact our stores in Albuquerque and Belen, New Mexico, today!

How Long You’ll Use It

First, consider the period of time you’ll be using the equipment for. If you plan to use it for as long as you can, you should look into long-term financing options and provide a hefty down payment to help lower your monthly installments. However, if you only need the machine over a short period of time, an operating lease might work better and save you money. That way there’s no down payment and you only need to pay monthly installments as long as the lease is active.

Loan Qualifications and Limitations

There are a number of criteria a lender will look at to determine whether or not they’d like to grant you a loan, including your financial records, credit score and history, and so on. You’ll want to get your business’s records all sorted and ready to share before you start looking for a loan to stay a step ahead. 

Loan applications can also take weeks or even months to go through and get approved, and then there’s even more waiting before the funds arrive. That makes it worth your while to see if you can get the full cost of the heavy equipment financed immediately—otherwise, you may have to pay some of it out of pocket. 

There may also be restrictions on where you can purchase or lease the equipment from. Check out all of your options before you sign any paperwork so you know exactly how long you’ll be waiting for approval and the money itself.

The Right Deal

That doesn’t mean you have no say in the process at all. Doing things ahead of time,like having down payment funds saved up, can help the process move along smoothly. Like we’ve mentioned, a larger down payment means a lower interest rate and monthly installments, which gets you paid off sooner.

You’ll also need a firm budget ahead of time, factoring in the down payment, how much you can afford to pay monthly, and additional costs like insurance, registration, maintenance, fuel, add-ons, etc.

Ready to get started? If you have any questions, contact our finance team over at Desert Greens Equipment. We proudly serve the people of Belen, Santa Fe, and Rio Ranchero, New Mexico—let us serve you today!