Unlock growth and savings with used equipment financing.
Financing used equipment can be a game-changer for your small or midsize business, helping you grow without stretching your budget. Companies can access high-quality resources at a fraction of the cost by choosing pre-owned equipment. This approach frees up your capital for other investments and helps you maintain cash flow flexibility.
Below, we’ll take a deeper look at the benefits of used equipment financing and discuss considerations to keep in mind before signing the dotted line.
Benefits of Used Equipment Financing
Retain More Working Capital
Retaining working capital is crucial for managing day-to-day operations and seizing growth opportunities. Equipment financing helps keep more money in your pocket by allowing you to acquire necessary equipment without an upfront cash outlay.
Dakota Smith, Head of Operations at Bevel Financial, explains how this approach improves working capital management, saying, “Typically, equipment financing offers 100% financing, meaning that operators can acquire essential gear without laying out any of their cash upfront and pay down the purchased assets over time over predictable payments. In many cases, equipment loan interest and depreciation can be tax-deductible, potentially reducing the overall tax burden.”
Avoid Initial Depreciation Cost
New equipment depreciates quickly, losing as much as 40 percent of its value in the first year. In contrast, used equipment has already experienced much of this initial depreciation. Businesses can enjoy a lower purchase price and potentially lower insurance costs by choosing pre-owned machinery. Financing used equipment helps you avoid steep depreciation expenses and retain more of your investment’s value over time.
Available Immediately
Depending on manufacturer wait times, new heavy equipment can take months to acquire. You may also have limited options based on market supply and demand. On the flip side, used equipment offers more flexibility and variety. You can often get pre-owned machinery immediately or have it shipped to you quickly. Plus, used equipment generally provides access to a wide range of makes and models, giving you more choices to suit your needs.
Proven Track Record
Used equipment often has a detailed track record, helping you evaluate its reliability and performance history. If the machine owner had their equipment enabled with telematics like the EquipmentShare T3 suite, you can feel confident that the machine has been regularly serviced throughout its life, ensuring you receive the most value for your investment.
Steps to Take Before Financing Used Equipment
Understand Your Needs and Options
Before financing used equipment, identify your business needs and find models that meet them. Read reviews to understand features and potential issues. This way, you can make an informed decision and choose the best equipment for your business.
Ask About Warranty
Many used equipment dealers offer warranty packages or service plans to reduce the risks associated with buying used equipment. These plans protect you from unexpected repairs and help maintain the equipment’s value over time by ensuring it’s kept in good condition.
Review Maintenance Records
To avoid investing in equipment that breaks down quickly, ask to review the machine’s telematic data. This information will let you know if the equipment has been maintained according to manufacturer specifications.
Why Should I Finance Used Equipment With Bevel Financial?
Bevel Financial understands the complexities of financing used equipment and works closely with you to address your business’s unique needs. Our experienced team takes a comprehensive approach, helping you assess the equipment’s condition, value, and suitability for your business. We offer flexible financing solutions tailored to each borrower’s situation, whether adjusting loan terms to match the equipment’s expected lifespan, structuring payments to align with cash flow patterns, or providing options to upgrade as technology evolves.
Bevel’s deep industry knowledge allows us to guide you through potential pitfalls, such as understanding maintenance requirements or navigating warranty and service contracts. Moreover, our relationships with reputable equipment sellers and inspectors, like EquipmentShare, can help ensure you make informed buying decisions.
By focusing on your long-term success, Bevel Financial strives to provide more than financing; we’re a partner supporting your business’s growth and efficiency through strategic equipment acquisitions.
Your Financing Partner For Used Equipment
Financing used equipment is a smart move for small and midsize businesses that want to grow without spending a fortune. At Bevel Financial, we’re here to make the equipment financing process easy with tailored solutions and expert support. Contact us today to secure business financing for your next investment.
