Interest Rates and Funding Speed for Heavy Equipment Loans
The equipment itself is used as collateral, which explains the lax terms. There are a few conditions you need to meet throughout the period of a heavy equipment loan. The interest rates and the funding speed are at the center of it all, and these two things are discussed below.
Since the equipment provides security over the loan, the lender has to take a much smaller risk. In case you are not able to pay back the loan, your lender will seize the equipment. The lower risk means lower interest rates when you pick heavy equipment financing—usually between 8% and 30%.
Construction equipment financing lacks the need for you to undergo a strict underwriting process the same way as with unsecured loans. You are able to acquire funding in the form of the former in as soon as 2 days after applying. Remember that there is an additional party involved here—the vendor. You have to ensure that they have a quote that they can provide quickly in order to transfer the equipment into your hands after giving approval.