Finimpact

Conclusion

Heavy equipment financing is an option for business owners that need to purchase expensive machinery but who don’t want to pay the full price upfront. Even if you have the cash on hand, spreading the cost over the long term can be better for your company’s cash flow.

Frequently Asked Questions(FAQ)

Is heavy equipment financing hard to qualify for?
No, heavy equipment financing is usually not hard to qualify for because the equipment serves as collateral.
Do I have to put up collateral for heavy equipment financing?
No, you don’t need additional collateral. The heavy equipment you buy serves as collateral.
Can I get heavy equipment financing with bad credit?
Yes, you can qualify for heavy equipment financing with bad credit. However, expect to pay higher interest rates and fees.
How does heavy equipment financing affect taxation?
You may be able to deduct the interest and other costs related to the financing from your profits when paying business taxes.
What if I need to replace my commercial equipment?
To replace your commercial equipment, you will need to throw it away or sell it, then repay the balance of your loan. You can then finance new equipment.
What to do if my equipment becomes obsolete?
If your equipment becomes obsolete, you can sell it to recover some costs, then purchase or finance new equipment.

About the Author

TJ Porter

TJ Porter

Personal Finance Writer

I have in-depth experience in reviewing financial products such as savings accounts, credit cards, and brokerages, writing how-tos, and answering financial questions both simple and complicated.

More about me

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