Although inflation is creating wild price fluctuations and uncertainty in the market, financing your equipment purchases allows you to control overhead and fix costs.
Let’s be honest, the current business climate is challenging for equipment owners. Demand is incredibly high because supply is so low, and when a machine is available to purchase, high inflation and rising interest rates mean that what it costs today to buy is more than what it cost yesterday — and lower than what it’ll cost tomorrow.
It feels like a no-win situation for many.
Historically, when rates go up, buyers decide to put off financing their purchases in hopes the rates will go down, or worse, they start rate shopping with lenders they aren’t familiar with to find the best deal.
But, it doesn’t have to be this way. Even with the most recent increases, interest rates among credible, well-known lenders, including JLG Financial®, remain historically low, making it still a good time to finance an equipment purchase.
Here are four reasons why…
#1: Waiting could make things worse.
Economic forecasts indicate that equipment prices and interest rates could continue rising through 2023, especially if demand remains high and supply chain constraints remain unchanged. Purchasing now means you avoid the risk of higher interest rates in the future — and that your money goes further. You may be able to buy more equipment now, potentially allowing you to leverage a better price.
#2: Access to capital has not diminished.
Despite the sense of uncertainty in the economy, money is still accessible to buyers who want to finance their businesses’ capital investments, including equipment purchases.
The best way to make sure you can finance your purchase is to get pre-approved. Getting pre-approved for financing allows you to know how much you can spend and what you can budget for each month. In many cases, OEMs like JLG offer flexible financing on equipment purchases to fit your cash flow needs.
For lenders like JLG Financial, a quick call or text with your business name, address and phone number is all you need to get started. And, JLG Financial works with customers to minimize the upfront credit requirements while maximizing approvals. This practice allows businesses like yours to focus on profitability rather than spending time securing a loan.
Once you apply, lenders will work to get back to you as quickly as possible to lock in the best rate. For example, JLG Financial will get back to you with a credit decision in as little as two hours, publishes a monthly rate card for fixed prices while you shop and will ensure that your pre-approval is good for up to 90 days. These actions allow you to shop at any dealer, for any asset, without worrying about how you will pay for your purchase. This will also give your equipment dealer confidence that they are negotiating with a qualified buyer.
#3: Control overhead and fix costs long-term.
Financing can create rigid long-term cost structures, which means your monthly payment will not change throughout the length of the loan or lease once you’re locked in a contract. This gives you peace of mind that you can buy now without getting surprised later.
And, did you know that you can finance more than just the purchase price of the equipment? You can also include freight, surcharges, taxes and other related qualified soft costs into your loan or lease amount.
Another key advantage of financing your purchase is that many lenders, including JLG Financial, can customize your terms with tailored payment options to help you further control cash flow and meet your business’s specific needs. For example, you may be able to get reduced payments during the ramp-up/training phase required by some equipment, or you can request a seasonally adjusted payment plan to help with routine business fluctuations or seasonal slowdowns.
One more alternative to consider is upfront payment deferrals or lease terms that match the term of the project to the length of financing, allowing you to return the asset once the job is complete.
#4: Work with a lender you can trust.
Equipment financing offers many benefits like cash flow advantages, leasable equipment options and custom payment structures, making it a savvy way to acquire equipment for your business and stay financially flexible to tackle other opportunities.
Financing equipment purchases can potentially be more challenging than financing other types of purchases. That’s why you need to work with a lending partner like JLG Financial that not only knows about the financing market but also about the industry you work in, as well as understands the types of equipment you need to get the work done and can design a financing program that specifically meets your needs.
With the help of a trusted lender, you can use your equipment purchase to drive more profit, help you manage your fleet more efficiently and to grow your business — even in the most uncertain of market conditions.
Finding the right equipment can be difficult but finding the right lender when trying to purchase heavy equipment can be even more complicated. That's why JLG Financial makes the process of leasing heavy equipment easy, so you can focus on what really matters — your business. If you are looking to get more out of your business, without sacrificing time and affordability, click here for more resources from JLG Financial. For more information about equipment financing options available through JLG Financial, click here.
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