Are you in the market for forestry equipment? That’s great news! It likely means your forestry business is growing. Whether you are starting out or have secured a new contract, you will need the right equipment for the job. But before you dish out all that money to purchase your equipment, consider forestry equipment financing. Here are five reasons why forestry equipment financing may be right for you.
Forestry equipment financing to ease cash flow
As you most likely know, forestry equipment is not cheap! While purchasing your equipment will provide instant ownership, it also requires a significant amount of cash up front. On the other hand, forestry equipment financing offers many advantages. Most notably, companies opt to finance their equipment to ease cash flow. By choosing long-term financing, you will considerably reduce the impact of your equipment’s initial cost.
Forestry equipment financing offers different options to get the right equipment for your needs
Every company is different, and every contract has specific needs and requirements. Whichever direction your business is heading, forestry equipment financing is a wise way to get there. In fact, forestry equipment financing is a cost-effective and tax-efficient way to acquire the equipment you need. You can finance new or used equipment based on your budget. Furthermore, forestry equipment financing allows you to plan your monthly payments, helping you better manage your budget. And it leaves your cash and credit lines open for other business activities.
Forestry equipment financing offers flexible payment terms to match your seasonal business
As the forestry industry is a seasonal industry, you will likely experience down time. Thus, forestry equipment financing programs can structure payments according to these seasonal trends. For example, skip payments mean you will not need to pay during slow periods. Instead, your yearly cost will be spread over the remaining payments.
Lease new equipment and save on repairs
Because construction and forestry equipment take a serious beating, buying new has many advantages. Most notably, new equipment will require fewer repairs and fewer upgrades. As equipment ages, it will require more frequent maintenance and repairs. This will cut into your profits. However, your business’s financial situation may make an upfront purchase impossible. As such, forestry equipment financing presents an interesting alternative to acquire new equipment. New equipment will also ensure you will get the job done right. Having the best tools for the job will increase your business’s efficiency and performance.
Use your existing equipment as collateral on a new loan
If your business is growing, you can use your existing equipment as collateral on a new equipment financing loan. This is a great way to use your assets to your advantage. It allows you to unlock cash to further grow your operations.
There are many benefits to forestry equipment financing. If your business needs new or used equipment, contact an SFL Leasing Group broker today. They will be happy to guide you through the application process and provide more information.