As the economy has weakened and defaults have occurred at all levels, lenders Have put themselves into a very difficult position how to do business. On one hand, the lender has taken back tremendous amounts of repossessions due to default of payments or non-compliance of terms with the lease. The lessee can't afford to make payments when the revenue base isn't there and the costs of doing business has sky rocketed. The lessee has either walked away from his obligation to pay the lender or the lender has taken back the acquisition. Either way, everybody is a loser and the future looks no brighter.
The lender must recondition these repossessed items and either re-lease them or auction them off at a discount. This isn't a good scenario because the lender is losing time and dollars on every repossession. As this problem has leveraged itself, it has put some lenders into financial crisis. At the present time, some lenders have had to reevaluate their financial models and make dramatic changes. Their normal lending requirements have become more stringent and fewer prospects will now qualify for commercial trucks and construction equipment than one year ago. Many lenders will not lend on new acquisitions unless your personal credit score is above 650, 680 or higher. This has caused a problem on buyer acquisitions but also limited the lenders' growth which might be his survival. Additionally, financially strapped lenders require time in business of at least two, possible three years. This additional requirement has eliminated a big pool of potential buyers of heavy equipment and trucks.
As the lenders normal credit models have changed, this has caused potential buyers to be cautious and/or nervous of lender's intentions. Every week, information is in the news pertaining to a bank/lender and for the most part this information is damaging to the lending industry. In some instances, some lenders have transformed itself overnight into a different type of lender.
For the startup business, this has caused them to be almost locked out the trucking and construction industry entirely unless they have a personal credit score of 700 or higher. Additionally, the risk/reward factor that is presented at this level has required the lender to require a 15-20% down payment to consider a startup transaction.
One of the solutions that is available to the start up or the seasoned business without stellar credit is repos offered by these strapped lenders. These trucks and heavy equipment can be attractive to potential buyers because the front money may be minimal and the lender may be more flexible in its financing and credit requirements. This expanding market should be examined by all potential buyers because unique opportunities can exist for all different levels of the customer wants and needs. Seasoned businesses with stellar credit and time in business could be rewarded handsomely in the price, financing or both. .
This following types of work trucks and construction equipment is described in this article:
Dump trucks, bucket trucks, day cabs, concrete and cement trucks, boom trucks, water and vacuum trucks, articulated trucks, garbage trucks, tow trucks, excavators, bulldozers, forklifts, concrete equipment, concrete pumps, forestry equipment, backhoes, etc
In conclusion, when shopping for financing on commercial trucks and construction equipment, it is important that you acquire as much information pertaining to your lender. Times have changed and your contract that you signed must be carefully read and understood. These lenders that exist today may be completely change its lending model in a year or so and/or possibility Be out of business. Boy, times have changed..
Happy hunting for your acquisition and related financing...
Those who are do-it-yourselfers know that the best and least expensive way to accomplish a task is to pull out the work gloves and get after it. But does that include projects that require construction equipment? There are several things to ask yourself before you decide whether to rent (or buy) construction equipment or to call in the pros.
Two of the most important things to consider are cost and size of the project. Have you always wanted a pond? There is really nothing stopping you from building one if you have enough land and there are no zoning laws restricting it. That is going to be a pretty big project and you might be surprised how much earth has to be moved to create even a small pond for watering livestock.
Think you are not qualified to operate construction equipment? You might be right. If you have never operated a bulldozer, you are going to quickly find out that those professionals only make it look easy. There is a lot to learn before you can successfully move dirt the way it is supposed to be moved. But even if you know how to run a bulldozer or other construction equipment, you may not have enough knowledge to put the equipment to proper use.
If you know anything about ponds, you know that just digging a hole is not going to get you a pond that holds water. If you know how to go about the sealing process, whether you should have a drain and how to choose the best place for your pond, you may very well be in a position to rent a bulldozer and build your own pond.
Think you are going to need a series of ponds? In that case, you need to carefully consider how long it will take you to do the digging and get a good estimate for the cost of renting the construction equipment you need for the entire project. Do not overlook transportation fees, especially if you plan to only use the equipment for a few days, send it back and then rent again. Do not overlook your time. If you are taking time off work, figure that into the cost of renting.
Compare that to the cost of hiring someone who owns the construction equipment to get the project completed. If it is a big project, consider purchasing your own construction equipment. After you are done, you can always sell the equipment to regain at least part of your investment.
Whether you are talking about a bulldozer for a major earth-moving project, a Ditch Witch to lay cable or water lines, or a jackhammer to bust up a concrete pad, you may be surprised at how affordable renting construction equipment can be.
Both Jm Luna & Kenneth Scott are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Jm Luna has sinced written about articles on various topics from Finances, Trucks and Finances. J.M Luna has over thirty years experience in the financial field. This includes accounting and taxes, leasing and hard asset money and commercial loans. U.S Corporate Capital Leasing assists the startup and seasoned business in all different types of indu. Jm Luna's top article generates over 8100 views. to your Favourites.
Kenneth Scott has sinced written about articles on various topics from Credit Cards, The Beach Resort and College Education. To find more information about home related topics and visit. Kenneth Scott's top article generates over 301000 views. to your Favourites.