What To Do If You Don't Qualify To Finance Heavy Equipment
If you have been looking to acquire heavy equipment for your construction business, you might have applied for financing to help you pay for the purchase. Even though this can be a good option for some companies, it isn't an option for every construction business. If your company is already in a lot of debt, if you don't have good personal credit or if you aren't bringing in a lot of income from your business right now, you might have found that you got turned down to finance the equipment that you wanted to purchase. You could think that this means that your company will not be able to get the equipment that it needs, but this does not have to be the case. These are a couple of options that you can look into instead.
Buy Used Equipment for Cash
One option that you can consider is purchasing used heavy equipment, which can be a whole lot cheaper than brand new equipment, for cash. This can have its pros and cons, of course. You won't be able to use brand new equipment with all of the bells and whistles if you choose to take this route, and you may still need to cough up a large amount of cash upfront. However, if you are able to do so, this can help you get the equipment that your company needs, and you will not have to worry about making monthly payments on your equipment, which can be a big relief during slow months or months when your expenses are high.
Another good option that you might want to look into is renting equipment rather than buying it. This can be a good idea for business owners like you for a few reasons. You will not have to worry about coughing up the money to purchase used equipment upfront, and you will not have to worry about getting approved for financing like you would if you were purchasing new equipment. You will still be able to use brand new equipment, and you'll be able to swap out the equipment as your company's needs change. Plus, you will not have to worry about all of the maintenance costs that go along with ownership as well.
As you can see, even though it might seem like a big deal that your equipment financing application was turned down, you do still have options. These are two of the options that you can look into if you would like to ensure that your business has access to the equipment that it needs. Contact a company, like A-1 Rental, for more help.