These machines help them take on projects that were previously out of their reach. Choose a term based on the monthly payment you can afford. Longer terms mean lower monthly payments, although the total cost is higher. Financing new or carefully used excavators also increases a company’s fleet. To qualify to finance heavy machinery, you need a credit score of at least 620, preferably higher.
To qualify for heavy equipment financing, you need a credit score of at least 620, preferably higher. Terms usually range between 12 months and six years and can depend on what you buy. However, excavators are a serious investment, and buying them directly is a big capital outlay. Many lenders do not offer a loan that exceeds the useful life of the equipment.
How long can you finance a bobcat?
Financing comes after loans are approved by authorized Bobcat financial services providers to well-qualified buyers. In addition, the company still has control over its purchase options through leasing and financing, allowing it to buy out its lease at any time. We take a personalized approach to identify the best financing solutions for your specific equipment procurement. Since these programs usually don’t require a down payment, you can get brand new equipment with 100% financing whether the machines are new or used.
While companies can use loans for small start-up companies with bad credit, terms and interest rates are often not as cheap as leasing or financing options.
What is the interest rate for heavy equipment?
As merchants make their money selling devices, many sweeten the deal for newer devices by offering prices ranging from 0 to 5%. Compared to leases, loans typically have better interest rates but cover a lower percentage of the total cost. Because the risk to the lender is lower, you can access relatively low interest rates for financing heavy equipment. You can also find heavy equipment financing from traditional banks that may take longer to finance but can offer cheaper interest rates and terms compared to online finance companies.
We’ll review what’s included in your equipment loan agreement, such as your interest rate and repayment terms, so you can sign the form. Although you may still be approved on bad credit, you will likely face higher interest rates than borrowers with good or excellent credit.