Equipment Finance is used in construction, civil, land clearance, road constructing and other industries to fund the purchase of yellow goods such as diggers, graders, dozers, scrapers and loaders. Finance for these assets is quite specialised given the high cost of the assets when new and also their long life.
This provides for two general scenarios that most businesses aspect.
The equipment will be moreover:
It will be quite old.
Either way, the high cost or the age of the equipment can make it challenging for a business to fund. CASE STUDY:
A small client of ours that had been operating for 8 years and had a fleet of 22 dozers approached us to fund the purchase of a 3 year old dozer for $295,000 which he needed to take on a new job. We were able to get him an approval for the full amount of the dozer within 48 hours, without financials.
This enabled him to get the new machine on site by the end of the week so he could take advantage of the new work and not have to lose money by hiring in a contractor.