04 Jul Overcoming Financial Challenges in Construction Equipment Financing
Navigating Credit Hurdles for Construction Equipment Financing
Introduction
Securing financing for construction equipment can often be a complex and daunting process, especially for businesses grappling with less-than-perfect credit or a recent startup status. However, navigating through these financial hurdles is not impossible. In this blog, we explore the options available for such businesses, making it easier for them to acquire much-needed funding.
Overcoming Financial Barriers with Equipment Financing
Flexible Financing Options
Equipment financing options are available that extend well into the millions, supporting businesses irrespective of their size or credit situation. Typically, decisions on financing are made swiftly within 24–48 hours, with payment plans extending up to 60 months. These options create an avenue for businesses that have previously been turned away due to credit issues.
Special Provisions for Startups
Startups typically face an uphill battle when securing funding due to their lack of financial history. Nevertheless, there are lending solutions designed specifically to support these fledgling businesses, enabling them to kick-start their operations effectively.
Unlocking Working Capital with Equipment Equity Loans
The value of your equipment can be leveraged to unlock additional working capital for your company. Such loans are not based on company profitability but on the value of the equipment, allowing businesses even with poor credit to access cash quickly. This cash influx can be utilized to take on more jobs, acquire new equipment, or expand operations.
Accounts Receivable Financing: Turn Invoices into Immediate Cash
Accounts receivable financing offers a solution to businesses waiting 60, 90, or 120 days to get paid for their work. Lenders can provide you with working capital the same day you bill, getting paid back when you get paid. This enables businesses to have immediate access to cash for working capital or any other needs, despite longer invoice payment terms.
Extensive List of Equipment Eligible for Financing
A vast range of construction equipment qualifies for financing, including but not limited to fuel tanks, backhoes, bulldozers, concrete mixers, cranes, dump trucks, excavators, trailers, and various types of trucks. Regardless of your equipment needs, there is likely a financing solution available.
Conclusion
Less than perfect credit or being a startup should not be a roadblock to securing necessary construction equipment financing. By understanding and utilizing the variety of options available, businesses can navigate through these financial hurdles, ensuring their construction needs are met and their growth plans are supported.