How to Apply for Heavy Equipment Financing
Heavy equipment financing is also called construction equipment financing. It allows you to get a lease or loan to buy construction equipment for your business, in order to ensure that you will not have to buy equipment up front. The construction equipment in question could be used or new. Lenders use the equipment itself as the collateral for this kind of loan.
How you have to Apply
Initially, you have to see if you fulfill all the requirements for the heavy equipment financing. If you check all boxes, you can proceed to compile all the required documents for the loan, before filing an application. Below is a list of documents you will have to submit when you apply for heavy equipment loans.
- Driver’s license
- Business and personal tax returns
- Voided business check
- Financial statements with a representation of profits, revenue, and expenses
- Latest bank statements
- Equipment quote or invoice provided by the vendor
The amount of paperwork and documentation you need to submit depends on the lender you choose to consult. In most cases, it is seen that banks require much more documentation. On the other hand, online lenders require a minimum amount of documentation. However, banks offer better interest rates. Therefore, the final decision should be taken after considering all factors.