Commercial Equipment Financing

Small businesses that work with heavy commercial-grade equipment to carry out their daily operations face higher overhead costs than other types of businesses. When it comes to acquiring, upgrading, or replacing equipment it can be difficult to pay out of pocket without straining cash flow.

Don't let this deter you from the needs of proper operations or growth for your business. We’ll dive into some of the commercial equipment financing basics and cover what you should know about small business lending,  heavy equipment/ commercial truck loans, and leasing options.

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What is Commercial Equipment Financing?

Commercial or heavy equipment financing includes loans and leases used to acquire specialized vehicles, such as dump trucks, box trucks, backhoes, skid steers, and bulldozers, that are used in construction, excavation, or timber projects.

There are several different ways to go about financing commercial equipment, depending on whether you’d prefer to own the heavy equipment or simply just operate it.

What can I finance?

You may be wondering what exactly constitutes as commercial equipment. Kapital Venture works with many lenders so when it comes to our clients' financing needs, we have many options to choose from. Some of the most common construction equipment we finance are:

  • Tractors
  • Box trucks
  • Skid steers
  • Dump trucks
  • Street sweepers
  • Pile drivers
  • Backhoes
  • Forklifts
  • Cranes
  • Trailers
  • + More

What are the benefits of equipment financing?

When you get approved for a commercial truck loan you will be able to purchase or lease trucks without having to tie up your company's working capital or business credit lines. This simply allows you to use those resources towards other aspects of your business and continue doing what you do best: serving your customers.

Should I finance new or used construction equipment?

Depending on the type of heavy equipment you’re looking for, you may have the option to finance used or new equipment. Used equipment can often fall into the hands of equipment lessors when the equipment is returned to them rather than purchased. Companies may simply provide operating leases for small businesses that will use the equipment for a short time and then return it.

Do I need collateral?

So that multiton vehicle you’re financing? It’s worth quite a bit, and your lender will either have a lien on it or own the title to it, depending on the type of financing you receive. The nice thing about equipment financing is that the equipment you’re financing is the collateral. If you default on your loan or lease, the financer can simply repossess the equipment.

Is Heavy Equipment Financing Right For You? 

Not sure if heavy equipment financing is right for you? Kapital Venture and our lending partners have a wide range of funding options to help get your small business what it needs. In addition to commercial equipment financing, we offer short term working capital options as well as ongoing invoice factoring to those looking for a short term options.

As your business revolves around its vehicles and equipment for daily operations, it makes good sense to add trusted financing experts to your contacts list.

If you're new to Kapital Venture, we want to welcome and help companies just like yours to finance the equipment you need to remain successful.

If your equipment is suffering from normal wear and tear causing you to fork over lumps of cash for repairs, it might be time to consider replacing it. Give us a call or request financing today!