Heavy Equipment Financing: Trends and Solutions For Growing Companies

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For companies that are looking to grow and continue their momentum, it’s important to watch the trends that can potentially give you an edge over your competition. But what about trends in financing? Believe it or not, yes, there are new and innovative ways to purchase or rent equipment you need.

Equipment Trader is taking a look at some of these current trends and solutions to provide you with options you can use when potentially purchasing new or new-to-you equipment that’s pre-owned. This may also be helpful for those who are starting to make the move to zero-emission vehicles as you start to wean out your gas-powered equipment.

Find new and pre-owned loaders for sale online.

As-A-Service Financing

Also known as Equipment-as-a-Service (EaaS), As-a-Service financing for heavy duty equipment involves renting equipment as needed instead of buying new or used machinery or vehicles straight out. This would create a growing need for equipment providers that would manage their fleet inventory instead of that burden falling on the renter. Oftentimes, the provider is the equipment manufacturer or distributor, so you can pick a name you trust and go straight to the source. This business model will likely create equipment providers that are not associated with a single manufacturer or distributor, thus diversifying their ability to serve their customers. 

In either case, this is a good solution especially for construction companies that don’t have a lot of cash up front for purchases or those who want to avoid fleet management, including routine maintenance and part sourcing. It also provides customers with the ability to always have the latest technology at their disposal on each new project.

Asset Management

One of the issues with purchasing new equipment comes down to if the equipment you pick will be utilized in an efficient and effective way to make you money. In other words, will its capacity meet the potential you desire? Conducting a comprehensive evaluation that weighs the efficacy of each piece of equipment in your fleet and properly managing the workforce that utilizes the equipment will potentially increase your profits. With more money, you can buy more equipment, if and when you need it, as long as it fits into your overall asset management plan. When you have more profits, you can worry less about financing options because you’ll be able to use cash for purchases.

Asset Sharing

One rising trend in heavy duty equipment financing is to share the burden of buying machinery with another company. While this may seem counterintuitive to the concept of competition, teaming up with a competitor is a great way to have the equipment you want at only half the cost (or less than half if you have multiple partners).

This does not mean that you are in the position to buy out another business, nor are they out to take over your company. The trick is to find a competitor you can trust, reach an agreement with them to share the purchase price, then work out a schedule that keeps you both profitable. For example, if you both need an excavator, determine who will need it first and how long they will need it. Then the sharing partner can schedule the workflow on their next project to start excavating as soon as you are done with it.

This concept obviously has some legal considerations, such as how much the first party will pay the second party per day if the first party falls behind on their production schedule and can’t deliver the equipment to the second party on the day that was mutually agreed upon. Another might be to formulate an agreement on how routine maintenance and storage of the equipment will be handled, especially if neither party is using it at any given time. There may even be an opportunity to rent the equipment out (sort of combining EaaS with Asset Sharing) when the equipment usage is in a lull.

Compare prices online for new and used heavy equipment trailers for sale.

Let’s Build A Relationship

The bottom line is, once you’ve determined that you need new or used equipment, figure out exactly what you need, and find the best way for your company to finance the purchase, Equipment Trader is your best online resource to find the machinery you want. 

As a footnote, in the EaaS scenario described above, many manufacturers will likely be selling their used equipment periodically to update their inventory. This means that many of these used pieces will find their way to the market—including on Equipment Trader—so you can get a gently used machine with low hours at a fraction of what you’d pay for new. Everyone benefits.

Barrett Baker

Barrett Baker is a freelance writer with more than 40 years of writing experience. He has worked with the U.S. Department of Energy, Ford Motor Company, General Motors, and a variety of advertising and marketing firms throughout his career. In his spare time, he enjoys photography, cooking, and working with animal rescues.

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