Bevel Financial is powered by our trusted network of financial partnerships. We work with each lender individually to ensure that each deal you see meets your credit criteria. From the geographic location, business lines, and credit ratings, our team ensures that you receive hot leads that fit your portfolio.
Identifying a reliable partner who can help you navigate the complexities of financing equipment, such as compliance requirements and accounting implications, is beneficial. You can ensure your finances are in good hands by considering all aspects of the process. We’ve provided some key terms and information to guide you through your journey into the world of equipment and commercial finance:
Equipment Loans:
Equipment loans are a great way to finance the purchase of construction equipment. They give you the funds to purchase necessary items without tying up cash. With an equipment loan, your company can spread out the cost of your purchase over time, allowing you to manage cash flow more effectively.
Financing equipment purchases will make it easier for your business to budget loan payments and plan for the future. With a Bevel Financial equipment loan, your company can get the construction equipment you need quickly and easily. Equipment loans can provide 100% financing to keep cash in your pocket and spread the purchase cost out over a fixed period, generally 60 months. Equipment loans typically come with a fixed term and amortization schedule, determining how much you pay each month and when payments are due. At Bevel Financial, we provide longer financing terms to our clients to further reduce the cost of ownership and put more money into your pocket at the end of each month.
Equipment Leasing
Equipment leasing is a great way to acquire the necessary equipment to run a business without a large upfront cash purchase. It allows your company to spread out the cost of your equipment over time and keep your cash reserves intact. Leasing gives your business access to state-of-the-art technology you may not be able to afford otherwise and provides 100% financing for all costs associated with your purchase. Leasing can also offer additional levels of flexibility to accommodate technology advances, job timelines, and budgetary needs. Bevel can help tailor a lease to your business needs, including proper amortization rates, lease rates, and construction periods. By working with the Bevel team, you’ll understand how these terms affect the lease’s overall cost and contract terms and ensure you’re getting the most value. The Bevel team will walk you through each definition and step of the process, guaranteeing you understand what you’re signing.
What is amortization?
Amortization is one of the essential financing aspects people know little about. Amortization is a term that describes the period over which the cost of an asset purchase, such as construction equipment, is spread. It is common for the amortization to match the loan term (60 months, for example), but that isn’t always the case. Some loans and leases will have a fixed term (5 years) with a balloon payment owed at the end of the term. When you see this, you know that the amortization (number of months over which you’ll repay the loan) is longer than the loan term. Your business can use a loan or lease to reduce your short-term financial burden and spread out expenses over an extended period. By matching the loan amortization with the useful life of your equipment, your business can keep more cash on hand, get the most out of their purchases and fleet, and reduce monthly financing costs.
Bevel Financial offers a unique approach to amortization in your financing agreement. Our team recognizes that your equipment purchase will have a long useful life if cared for properly, and we want to ensure your financing terms match. For example, the typical heavy construction financing agreement will have a 60-month term and amortization, which means that the borrower will pay off the amount owed over 60 fixed payments. We know that heavy construction equipment will last 10+ years if adequately maintained. The Bevel Financial team offers longer terms and amortization than a typical lender to honor your equipment’s useful life and reduce your monthly finance costs. Here’s an example of how Bevel Financial can enhance your cash flow:
Traditional Lender
60-month term and amortization
$250,000 purchase price
8% interest rate (as of 3/1/23)
Monthly payment: $5,069.10
Bevel Financial
120-month term and amortization
$250,000 purchase price
8% interest rate (as of 3/1/23)
Monthly payment: $3,033.19
That’s a monthly cost reduction of 40.2%. Imagine what you could do with that extra monthly cash simply by financing or refinancing your equipment purchases with Bevel Financial.
The Bevel Financial Edge
Bevel Financial offers an easy and convenient way to finance construction and equipment purchases. Bevel delivers longer terms and amortization; you will get the most out of your financing agreement and reduce monthly financing costs by up to 40% compared to traditional equipment lenders. We also provide educational resources so you can better understand the process of financing equipment. Reach out today to discuss your next purchase and how you can give your business the edge it deserves.
