FINANCE BLOG

Tree care and removal companies rely on specialized heavy equipment which requires significant investment. Sometimes when you need to invest in new equipment, you may not have the funds set aside to pay cash.

Arbor Equipment financing helps fill financial gaps, allowing you to upgrade your technology and equipment, work within your budget, and safeguard your cash flow. To ensure a smooth process, here are 5 things to do when applying for financing to purchase arbor and tree cutting equipment.

1. Research the Type of Equipment You Want

As you are deciding what to purchase, you should thoroughly investigate brands, suppliers, accessories and options, and costs. Understand your use for the equipment – are you adding to the services you provide, replacing a worn-out or damaged machine, or simply adding to your existing fleet?

Once you know what you need and how much it might cost, evaluate the purchase compared to your potential cash flow. Equipment costs money, but new or upgraded equipment should also have a positive impact on your revenue. Determine if the increased revenue generated will surpass the monthly loan payments. 

As you consider this, think about whether new or used arbor equipment would be best. New equipment typically costs more but comes with advantages such as warranties and reduced maintenance. 

2. Find a Lender that Understands the Needs of an Arbor Business

Once you know the equipment you want to purchase and approximately how much you can afford to spend, research lenders. Options include traditional lenders such as banks or credit unions, equipment dealer or manufacturer financing (known as captive lenders), and equipment financing companies. One of the keys to getting financing for arbor equipment is to find a lender that understands your business and the type of equipment you are purchasing. 

A lender that specializes in financing equipment for arbor and tree cutting businesses will understand your business needs better than a typical bank. The specialized lenders often have long-standing relationships with leading equipment vendors, know the type of equipment you are buying, and can often provide more flexible options than banks.

Consider the following when searching for a trusted lender:

• Do they have experience in financing arbor equipment?
• Do they finance both new and used equipment?
• Can they offer flexible options to help fit within your budget?
• Do they have a rep that’s willing to assist you in the process and answer questions?
• How much down payment is required?

Finding the right arbor equipment financing company is vital to the success of your business. A lender with experience in your industry and a thorough understanding of the equipment you want, makes for the best financial partner. They will provide helpful insight and support your growth in many ways.

3. Gather Your Financial Information

You’ve done your equipment research and you already have a lender in mind. It's time to gather your financial information and supporting documents and begin the application process. 

Typically, the information requested by a lender includes: 

• Company name, structure, start date,
• Description of the equipment being purchased,
• Guarantor information, including identification,
• Recent bank statements
• Tax returns
• Equipment invoice

4. Submit a Loan Application

Now that you have your information gathered, it’s time to submit the application. Some lenders provide an online application, others can email you a paper document to complete and return.

Depending on the lender, the amount being financed, the equipment being purchased, and how quickly you can get the paperwork to the lender, the finance process can take as little as a few days from application to funding. One of the keys to a speedy process is getting any requested information to the lender as quickly as possible. 

5. Review and Accept the Loan Terms

The loan process is a two-way street. The lender provides you with loan terms – down payment amount, interest rate, length of the loan, monthly payment amount. You then need to accept those terms before final paperwork can be produced. Once you accept the terms, the lender will send you documents to sign, which in many cases can be electronically signed. You provide the lender the down payment, the lender issues payment to the seller, and you can take possession of the equipment.

Summary

Before applying for arbor equipment financing, research the type of equipment you want, select a trusted, knowledgeable lender, gather your paperwork, submit an application, and accept the financing terms. 

Luckily, Keystone Equipment Finance Corp. is an independent lender that understands the arbor and tree cutting business and equipment needs. We provide arbor businesses with flexible and agile lending options to help you manage and grow your business. Contact us today to get started.