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12
Sep

Before Applying For A Heavy Equipment Loan

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When your construction company needs capital, getting a heavy equipment loan may be the answer. The process can be a lot smoother when you’re working with the right lender.

Get Smart Before Applying For A Heavy Equipment Loan

Here are some things lenders will want to know:

  • Name of your company;
  • Company address;
  • Business owner contact information;
  • Gross annual income; and
  • Monthly credit card purchases.

Be prepared for your potential lender to look at your credit history with a fine-toothed comb. They’ll figure out what you can afford and how they might be able to help you.

What you should know beforehand

  • Know your choices. What is it that you’re really after in a loan? Think about that before approaching a lender. Figure out what you think you can afford and what kind of terms you can live with. If you go in prepared, you’re more apt to get the amount and terms you were hoping for.
  • Preparation is key. Gather up your financial statements and put together a little synopsis on your company’s history. If you’re going for a larger loan – more than $150,000 – a lender will more than likely ask to see about three years of the company’s financial statements/tax returns. Getting this prepared and taking it to a lender will speed up the process. Everything they need is right there in black and white. Furthermore, doing this shows lenders you get the process and are keen on securing the right loan for your business.
  • Do research on lenders. You obviously want to find a reputable financer. Do an Internet search. Look for any reviews they may have received. Are they favourable? Are they registered with the Better Business Bureau? Request references from them. They’re asking you to provide information. You should do the same from them.
  • Make sure you know what your lease documents say. Don’t assume. Make sure what you’ve agreed to is in a lease document. This piece of paper supersedes any other proposals. Read it to make sure it really states what you agreed to.
  • Have realistic expectations. You’ll pretty much have an idea how much you’re likely to get and the rate, based on your company’s past performance. If you’ve paid your bills on time and have been in the black, chances are you’ll be happy with the outcome.

Financing experts like those at Truck Loan Center will work with you to customize a plan to fit your needs. Call them today to make an appointment to discuss how they can help you finance your heavy equipment.

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