Can We Get Financing To Buy Used Equipment?

Want to expand your inventory and wondering if you should buy equipment that is new or used? Although most industries have basic rules outlining best practices for purchasing equipment, each case is different, therefore the answer can vary depending on the goals of each business owner.

The cheaper initial cost of purchasing old equipment is one of its main advantages. This is typically the main factor behind a business owner’s decision to go with second hand equipment rather than new. Purchasing old equipment also has the benefit of preserving its value and lowering insurance expenses. 

When investing in used equipment, there are numerous things to take into account. Depending on your situation, you may find more worthwhile value by used equipment financing in Abbotsford.

Some key benefits to consider:

  • Saves Time: Get approved for the funds you need as soon as 24 hours.
  • Tax Deductions: Used equipment purchases qualify for a lot of the same major tax deductions as new equipment purchases.
  • Maintain Liquidity: When 30% of small businesses fail because of lack of cash, financing helps you conserve your hard-earned savings for when you need it.
  • Low Monthly Payment: Manageable low monthly payments that fit your budget.
  • Stability during Uncertain Economic Conditions: Even with supply chain shortages and inflated operational expenses, you can keep your costs low by financing used equipment.

Effective Tips on Financing Used Equipment

Nobody wants to make a business decision without proper insight. In order to prevent future maintenance problems and breakdowns, we always advise our customers to thoroughly inspect the equipment they intend to purchase and to confirm that it is operational before making a purchase.

If you’re thinking about financing your next used equipment purchase, here are some tips to get you started.

  • Choose A Lender:  Select a lender that specializes in assisting start-ups and businesses with difficult credit to get authorized, and that provides fast approval and flexible financing choices.
  • Don’t Overspend: Don’t overspend for equipment; instead, seek out deals that reflect its true market value. Because the market for second hand equipment is non-standardized and doesn’t have comparable prices from several dealers, it might be challenging to ascertain the going rate.
  • Read Financing Terms: For the duration of the lease, rent used equipment that is still valuable. It is harder to get approved if your equipment has a limited lifespan and poor resale value.
  • Think About Durability: Acquiring robust and durable equipment will not only prove to be a wiser investment in the long term, but it will also raise your chances of receiving a more favorable approval down the road.
  • Consider Warranty Coverage: While some dealerships or private sellers may not provide the same degree of after-sale service or support, used equipment could be less expensive. Consider the type of continuous maintenance needed prior to buying used equipment. By doing this, you can be sure that in the event that something goes wrong, you have the resources you need.

Conclusion

Buying a used equipment can save you thousands of dollars over buying brand new equipment. If you are planning to invest in a used farm or industrial equipment and need the financing options from an expert leasing and financing company in Abbotsford, rely on Sandhu & Sran Leasing & Financing. 

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