Heavy Equipment Loans
Typically, heavy equipment loans are secured solely or in part by the fixed assets being acquired and structured as a term loan repaid from the borrower's cash flow. In the construction industry, the use of large-scale industrial vehicles allows for the rapid clearing and preparation of open ground for new building projects. These hydraulic vehicles are used to remove existing buildings and vegetation, to grade and excavate the construction area and to lift components of the structure into place during the actual building phase of the project. Modern construction methods require the use of an extensive array of heavy equipment in order to complete these projects in the contractually obligated time period. Some companies manage the acquisition of these necessary pieces of equipment by leasing or renting them; however, this is only a short-term solution to the problem. In order to maintain ready availability for time-sensitive projects, it is usually necessary to purchase heavy equipment outright.
Heavy equipment loans are available from a wide range of commercial lenders. Companies seeking loans for heavy equipment purchases must usually provide a great deal of documentation in order to gain approval for their application. This paperwork includes financial statements for the company, information on the principal owners and investors, a statement demonstrating the necessity for the equipment and the expected profits to be achieved through its use and a description of any collateral to be used as security for the heavy equipment loan. The vehicles and industrial tools themselves can also be used as collateral for most loans for heavy equipment. The payments are amortized over the useful life of the equipment in these cases, allowing construction firm owners to spread out the cost of these major expenses to improve cash flow within the company.
CNF Exchange offers an exclusive interface that makes it easy for construction companies to obtain the lending arrangements they need to remain competitive in this field of industry. Borrowers can submit their applications for free through this innovative system and can even acquire added services from the expert staff at CNF Exchange, allowing them to put their best foot forward in the lending marketplace.