Tips on Financing Your Heavy Equipment

Heavy equipment is extremely expensive, and a majority of buyers choose to finance their models to ensure they can get their hands on their new machinery in a reasonable amount of time. However, figuring out how to finance a piece of heavy equipment can be a long process in and of itself. For tips on how to get the best loan available—and fast—check out our tips below! 

Get Your Finances in Order

Before you arrive on the dealership lot to start searching for your new piece of heavy equipment, it’s important to take some time to prep your finances for your upcoming purchase. Because you plan to take out a loan, it’s incredibly important that you take the time to get your credit score up to a reasonable number. By paying bills on time, reimbursing old debts, and regularly using and paying off your credit card, you can get your score to at least 650 in only a month or two. While you’re working to get your score up, you’ll also want to start saving up money for your down payments and coming up with a budget for your equipment. For a loose idea of how much you can afford to spend on your loan each month, subtract your monthly income from your monthly expenses to see what you have left over. 

Loan Stipulations 

Before you sign on the dotted line, we recommend doing a bit of research on your loan options and the financial institutions offering them to you. Banks, dealerships, and online lenders will likely offer you a number of different loan possibilities, with each one including different stipulations, APR, and term lengths. Before you choose one over the other, take the time to consider which option is the better choice for you. It’s also important to understand exactly what you’re being offered. If an institution offers you a secured loan, it will likely come with lower interest rates and term lengths—but with the stipulation that your equipment will be taken as collateral after a number of missed payments. Unsecured loans are often harder to qualify for, but won’t require you to put up any of your property as insurance. 

Looking for convenient and stress-free heavy equipment financing in the state of Texas? Then be sure to visit us here at Alpha & Omega Contract Sales & Consulting! We proudly serve the nearby community of Odessa, TX, and offer amazing financing services as well as an enormous selection of high-quality machinery.