Financing, Lending and Leasing for Heavy Equipment

Purchasing heavy equipment for your construction business can be expensive. One way to lower the cost is to buy used equipment. To pay for it without reducing your free cash flow or wiping out your cash reserves, construction equipment financing can be a smart option. Whether you’re financing, lending and or leasing for heavy equipment as a forklift, a boom lift or an excavator, can be cumbersome expensive .

Havelet Finance Limited provides heavy Equipment financing and loan of any magnitude at a flexible and affordable rates of 2% annually. Contact us to lean more about our offers.

The Difference Between Heavy equipment Financing, leasing & loans

Heavy equipment financing can be done through a lease or loan. With a lease, you pay a monthly fee, similar to renting, but with the option to purchase the item at the end of the lease term. At the end of the project, you can decide if you want to buy it or turn it back in if the equipment won’t be used on a consistent basis going forward.  With a loan, your monthly payments go toward the purchase, and you own the item outright at the end of the loan term. The better financing option for you will depend on the type of equipment you need and how you’ll be using it. If you need a machine for a short-term project, leasing may make more sense. Leases are also popular with equipment that becomes outdated quickly and needs to be replaced more often.

Heavy equipment Loan; Where to get it

While sourcing out loans for heavy equipment, a Traditional banks, credit unions and online lenders offer financing for new and existing customers. Equipment vendors may also offer financing through a financing partner. Customers who purchase used equipment from United Rentals, for example, can apply for financing directly on the website.

Rates and Terms for Equipment Financing

Equipment loan or lease, interest rates and terms vary. Interest rates are based off the prime rate, which fluctuates over time. But lenders make interest rate decisions on other factors as well.

At Havelet Finance Limited, all projects, and loans including large construction financing are offered in a 2% interest rate yearly with 24 months grace period.

Equipment Financing and Leasing; Application Process

The below are mostly considered while sourcing out for equipment financing/loans. This includes,

• Credit score
• Business revenue/cash flow
• Down payment
• Business Plan
• Utility Bills

The application process for construction equipment financing can usually be completed online or by printing out the application and mailing or faxing it in. You can also apply for a loan in person at a traditional bank or credit union.

Documents required when applying for Heavy Equipment Financing

Different lenders have different application requirements, but applicants typically must provide identification (such as a driver’s license), a social security number, a corporate ID number if applicable, bank account statements to demonstrate cash flow and business or personal tax returns. If you’re using the equipment as loan collateral, you’ll need to provide information from the vendor on the piece of equipment you’re purchasing.

Durations For Approval Process for Heavy Equipment Financing

Credit checks are determinant for immediate approval for heavy equipment financing. Most lenders may likely approve such loans between 24 to 48 hours, although bank loans may take up to 10 business days. Customers who apply for financing through United Rentals typically hear back within 24 hours of filing a complete application and supporting documents. At Havelet Finance Limited, once you confirm your readiness to provide us with your project plan, approval is instant.

Equipment financing/Bad Credit

All businesses have their ups and downs. If a down period negatively impacted your credit score, it doesn’t necessarily mean you won’t qualify for a loan or lease.

Traditional banks typically have minimum credit score requirements, but some online lenders may be more flexible. They often examine a company’s years in business, annual revenue and current market conditions in addition to its credit score and may provide equipment financing to individuals or businesses with low credit scores. Interest rates might be a little higher than rates for people or businesses with excellent or good credit, but those with lower credit ratings can sometimes qualify.

At havelet finance Limited, we most time overlook borrower’s bad credit but we will required a written personal guarantee for loan repayments.

RECAPS/INFORMATION OVERVIEW FOR EQUIPMENT FINANCING

Available funds/portfolio size: Over USD $2B
Funding Type: Loan/Project Finance
Our funding is unrestrictive to locations and project types.
Minimum funding: US$2M
Maximum funding: US$2B
Term: 10 years with a 24-month grace period and the option of renewal for an equal term.
2% Annual Principal Interest (Beginning after the grace period)

Our key requirements for the funding of an economically viable project will be an EXECUTED PROJECT FUNDING MOU and a NOTARIZED PERSONAL UNDERTAKING of the Project Owner for the repayment of our funding and the fulfillment of his contractual obligations under the MOU.