Whether they are new or used, forklifts are no small investment. And yet, they are a necessary business asset in your line of work. Forklift operators rely on their lift trucks day in and day out to perform the tasks at hand. So what do you do?
You could choose to purchase the forklift outright if you have it in your budget to do so. But isn’t it true that most often when you need to upgrade equipment it’s a sudden expense you didn’t plan for? When that happens, chances are your budget just can’t be tweaked to that extent.
That’s where financing comes in.
Why Finance Used Equipment?
The first reason is obvious: Save the money you have in your bank account for other business expenses, like payroll or marketing. Leasing allows you the chance to budget for your equipment and pay a steady monthly payment that you can expect. All the while, you are bringing in revenue generated from the use of that equipment. It’s a win-win.
But what else about financing used forklifts is beneficial to business owners like you?
1) Stay up to date: Anytime you are out seeking a new machine for your business (even if it’s considered “used”), means the one you currently have either isn’t meeting your standards anymore, or it’s not meeting the standards of the industry. Either way, you need to make sure your business is constantly staying relevant and up to date with the proper equipment. Financing gives you that option. Sell what you don’t need anymore, and lease what you do – and do it quickly. Don’t worry about having to front the money. Just buy now, pay later and keep moving forward.
2) Tax benefits: Government-sanctioned programs, like Section 179, are in place to help businesses maintain a steady cash flow and keep the economy moving. When you lease equipment throughout the year, the Federal Government gives business owners a tax write-off up to a certain dollar amount just for purchasing business equipment. It’s worth looking into and asking your tax advisor about. If you need the equipment anyway, why not lease it and save money on your taxes next year?
3) You get more than you bargained for: When you lease equipment, in most instances you aren’t just getting financing for the product itself. Most lending companies will include soft costs which cover delivery, installation, and training expenses into the leasing contract.
4) Continue to grow your business: Have you ever had to pass up a job opportunity because you didn’t have the right equipment? You don’t want your inability to access used forklifts to be a barrier in getting new business. Lease the equipment you need when you need it to continue driving revenue, getting customers, and growing your business.
There is more to financing than just choosing your equipment. Once you’ve decided that this is the route you want to go, it’s time to choose a lender.
Like anything else, before making such an important decision it’s expected that you do some research. But if you are a first-timer in the financing world, you may not know what to look for. Here’s a hint: Think of this as any other product or service. What would you require then?
Surely trust is high on that list. Can you trust the lending company you are working with? Look for reviews online from previous customers, check out their website, do everything you can until you feel comfortable they are reputable and trustworthy.
Another factor that should rank high on your list is speed and ease of each transaction. Will you get the funding you need as quick as you need it? Do they work with equipment vendors directly? What is the payback process like? Get all of your questions answered up front so you leave nothing to chance.
Finally, it’s important for any business you are working with to have great customer service, but especially a lender. There are a lot of moving parts to a financing transaction and you want to work with a customer service team that takes the time to understand your needs. The lending process may not always be easy, but having a lending partner that is behind you 100% of the way is crucial to a successful financing experience.
Financing used forklift equipment for your business may be the best decision you make this year. Clear up your cash flow, enhance your business, and find a lending partner you’ll have for life. What do you have to lose?
Alex Myers is a Segment Marketing Manager (formerly the Inbound Marketing Specialist) at Direct Capital. While she considers herself to be a self-professed cat lady and a Maroon 5 aficionado, she finds passion in her writing and in marketing. To connect, follow her on twitter at @Alexandraaalee.