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Adding Value to Your Company Through Heavy Equipment Financing

Whether purchased outright or financed, heavy equipment is expensive, but financing that purchase can actually add value to your company. The trick is to work with a finance company that specializes in your industry and can help you to find the best options.

Conserving Capital

Once a semi truck or construction equipment is purchased and put into use, its value begins to depreciate and all of the cash that was used to buy it is now gone, transformed into a machine that will continue to lose value over time. Financing your equipment purchase uses someone else's money to free up more of your working capital and lessens the blow of depreciation.

Maximizing Your Budget

Your budget is limited. Financing a heavy equipment purchase will spread the cost out over multiple years rather than placing a huge chunk of your budget into a single purchase.

Work With a Company that Understands Your Business

 There are creative financing options that may not be well-known to business operators. A reputable finance partner will be able to help you explore a lot more options than standard term-loan agreements. There are fixed rate options that can be locked in when rates are low to ensure that you are maximizing your capital as well as a growing number of consumer financial institutions who are offering 100% financing on equipment leases.

Avoid Equipment Obsolescence

Time marches on, as does technology. Every day, industries, manufacturers, and competing businesses are developing newer and better equipment to do a job better and faster. A semi truck or piece of construction equipment that was purchased just recently may no longer be the most economical option or, in some cases, no longer meet new industry regulations. As newer and better heavy equipment continually come out, that equipment that you now own could be becoming obsolete. Leasing new or used equipment moves that risk to the financial lender rather than your company shouldering that burden. A lease will allow you the option of an equipment upgrade at the end of the term.

Holding on to capital increases a company's value. Financing your equipment purchases allow you to spread expenditures over time to better leverage your budget while also decreasing your financial risks. Contact Michigan Truck Sales & Equipment for more news and information.

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