Commercial Equipment Financing: How to increase your working capital?

By: Harnam Singh

Commercial Equipment Financing has been around for years to assist businesses with purchasing crucial pieces of equipment for businesses.

There are various industries that are in search of equipment financing because they need the equipment to run their business.

Either it is a startup or a large enterprise, equipment becomes an integral part of running businesses and industries.

In order to complete the demand between supply and manufacturing for growing business equipment should be in good working condition.

Either you need new equipment or need to replace your old equipment to run your business efficiently, commercial equipment financing is where you can easily start.

And we at Singh Lending Solutions is here to help you with all kind of equipment financing for various industrial and commercial use.

commercial equipment financing


What is Commercial Equipment Financing?

Commercial equipment financing is a type of commercial loan for a business that is usually used to acquire a piece of equipment for commercial or industrial use.

Commercial equipment can be any kind of equipment as such new machinery, medical equipment, heavy equipment for construction, transportation, or waste equipment.

Today’s manufacturing companies have many options when it comes to financing equipment.

Mostly industries that use heavy equipment often rely on machinery and other equipment to get their job done.

Machinery and heavy equipment including truck, semi-truck, and semi-trailer for transportation are one of the expensive equipment that a business can buy.

Hence industrial equipment financing allows you to lease or purchase any equipment that is the need of the business that you are in.

It allows you to get the business loans necessary for your equipment purchase without having to spend the cash reserves that you have put to other business needs.

Also if you are interested in commercial trucks, trailers, and specialty vehicles for your business needs, commercial equipment financing can equally fulfill your needs.


How do Commercial Equipment Financing & Loans work for your business?

First of all commercial equipment financing are much more beneficial for industries and small business owners because of the fact that they need machinery to get the setup.

However many businesses are not sure about where to start and whether they are eligible for business equipment financing.

And when it is about heavy equipment financing, it takes enough cash and surplus to get the equipment and even used equipment can come with a hefty price tag.

Hence, commercial equipment financing is a healthy step that business owners can take towards upgrading any kind of equipment for their business.

Equipment financing companies are ready to help small businesses like yours and across numerous industrial sectors.

However, a lot of business owners don’t release that they can use equipment financing to procure machinery and equipment for their production, manufacturing, and services industry.

So startups can qualify to apply, however, you need to have some basic qualification such as:

  • You do need to be in business for 1 Year or more
  • Equipment you want to finance
  • Quotation from a vendor
  • A FICO Score above 650 which is considered a good credit score
  • Down payment can be as little as first and last month’s payment
  • Minimum $100,000 in annual revenue


Once you have the basic mandatory qualification you can directly apply for financing commercial equipment.

You can qualify for 12 to 48 months term loans along with an interest rate of 5% to 55% depending on your business and financial plan.

And applying for equipment financing at Singh Lending Solutions is quite easy. Simply fill out our simple online application form and our business consultant will get in touch with you.

We understand that getting new or pre-owned equipment has never been easier. So our business consultant will analyze your business and the equipment you need and come out accordingly with a financing plan simply tailored for your business.

At Singh Lending Solutions we understand no two businesses are exactly the same, nor buying new equipment is always an option.

So we work with you to find flexible options that work for you keeping it simple and flexible to get the equipment you need and not just making it heavy on your payment schedules.


How to increase your working capital for equipment financing?

In the case of equipment financing, you can also raise your fund on the basis of building equity.

Equity is built by increasing the difference between the market value of your machines/equipment and the money you owe on it i.e books value

At Singh Lending Solutions we not only look at the book value of your equipment but also take into consideration the real equity you have accumulated and if you are not sure about it our business representative will be able to advise you on the possible ways to use your equipment equity.

So if you are trying to meet business expenses or trying to buy new equipment finding a partner who understands your business and the value of your equipment is invaluable.

When thinking about building equity there are several questions that you need to ask yourself such as:

What is the probability that you may have large unforeseen expenses in the future?

Is there any likelihood that you could lose a contract?

Is there a possibility that your need to replace any of the equipment early?

Whether you are interested in expanding your business or for there is some other purpose?

If your main goal is to increase your machine’s equity, beware of taking on loans to pay for an equipment repair.

Equipment is essential for running your business but the equity for your machines and equipment can be used to get working capital for your business.

Building equity from your machines can be beneficial for your business because it is far more than trade value or resell value.

On the basis of equity, you can buy additional equipment, borrow cash, or get working capital to fund the operation for your business.

Hence equity is essential and indeed helpful otherwise financing options can be limited.


Types of Commercial Equipment Financing for industry-specific needs

There are several occasions when there is a great need for commercial equipment for your business.

You may start a new project or you start experiencing growth in your business or you need replacement of old equipment or your equipment has become obsolete.

So whatever be the reason, the only point is you need more sophisticated equipment to run your business and to meet the demand for products or services.

Adding equipment to business can lead to an increase in productivity, capability, efficiency, and smooth functioning of supply and chain distribution for manufacturing industries.

Depending on the nature of your business and the industry we at Singh Lending Solutions provide various financial solutions.

Have a look at some of the core equipment financing solutions for industries that we have been trying to solve for our customers for over a decade viz.

commercial equipment financing


a) Construction Equipment Financing

Construction equipment financing applies to industries that deal with heavy engineering equipment. So these industries often rely on heavy equipment financing.

We at Singh Lending Solutions are aware of the fact that purchasing heavy construction equipment has never been easier, so we support fellow brothers and customers who are in the construction industry and are looking for heavy equipment financing.

Our objective at Singh Lending Solutions is to support businesses that rely on heavy construction and engineering equipment so that you get the best tools for doing your jobs efficiently and effectively.

We want to get to know you and your business and we are ready to serve you with the best financing and leasing solutions products that will conserve your capital bring and support your business objective.

Our business consultants and construction financing specialists can work with you to choose and customize equipment financing that fits your construction business.


b) Medical Equipment Financing

Medical Equipment is a piece of highly demanding equipment for all medical and healthcare industries.

The United States is the world’s largest medical device market and it shows no signs of slowing.

So medical equipment is in huge demand by startups companies and healthcare industries who need highly sophisticated medical equipment and scanning devices that come at hefty prices and require huge cash for purchases.

Whether you want to modernize your existing healthcare practice or require capital for a start-up, Singh Lending Solutions can help you buy, lease, or finance medical equipment supplies and accessories.

We have already served the medical equipment leasing and rental markets for over a decade.


c) Manufacturing Equipment Financing

Over 99% of the businesses in the United States are small and medium enterprises and manufacturing is the backbone of our economy.

To compete in the manufacturing marketplace manufactures often stive to upgrade their tools that are vital for their factories and manufacturing industries.

Most of them are also not aware of the fact that equipment and machinery can be replaced through manufacturing equipment financing and bring more efficiency and better productivity for their enterprises.

We understand Tools and Machinery are vital for manufacturing industries, so here at Singh Lending Solutions, we offer manufacturing equipment financing that falls under fabrication equipment, metal cutting to used or new machinery with only a small upfront cost.

We also offer working capital loans that can help small businesses and companies maintain cash flow and access funds for daily operation needs.

Complete an application in-person or over the phone and we’ll work together to help determine the loan amount and loan terms that best fit your budget.


d) Transport Equipment Financing

Singh Lending Solutions is a pioneer in Truck and Trailer Financing for many decades. However, we provide various transport equipment financing as well which falls under transportation.

Some of these include commercial trucks, tow trucks, heavy-duty vehicles, semi-trucks, delivery vehicles, and long hauls. You also get customizable terms,​ great rates, ​and loans for no money down.

We help owner-operators and small businesses with transportation equipment financing for growing their business. ​

Our ​loan ​programs can be customized to fit your needs.

We assist the underserved and first-time buyers with transport equipment financing to help you and get started with your transportation business.

So you can either expand your trucking fleet or replace your old and used equipment today. Singh Lending Solutions has flexible financing solutions to meet your needs.

Hence if you are turned away by traditional banks but need transportation equipment leasing or transportation equipment loans we are here to stay with you.


e) Waste Equipment Financing

Waste equipment is often synonymous with construction equipment. Basically, there are two types of waste, solid waste, and liquid waste and different equipment come under solid and liquid waste equipment.

We are more decided to truck equipment, so solid waster equipment in the form of trucks such as roll-off trucks and boxes and hook lift trucks, etc. all fall under our solid waste equipment financing.

Several other types of equipment such as are Front, Side, and Rear Load Trucks, etc. are also a piece of solid waste equipment and we provide financing for these piece of equipment as well

Liquid waster equipment such as vacuum trucks, septic trucks, pumper trucks, and hydro-excavators, etc. falls under liquid waste equipment.

Generally, we assist both solid and liquid waste equipment financing and  Singh Lending Solutions makes waste equipment financing and leasing fast easy, and flexible.

We are a dedicated group of consultants with years of knowledge in the waste equipment financing industry.

Hence if you are curious to finance a piece of waste equipment our representatives can work hard to contribute to the success of your business.

commercial equipment financing


The Do’s and Dont’s of Commercial Equipment Financing

There are mainly 2 options to make while financing equipment for your business i.e. either you purchase or lease.

So it is very important to know whether you need the equipment permanently for your business or you need some temporary solutions to get your job done.

Depending on your needs you can make a good decision whether it is better for you to purchase the equipment or take equipment on lease.

So understanding what is more important, you can evaluate your best option and terms for leasing or financing machinery.


Factors on which you should lease a machinery

The machinery or equipment you want for the job can save you from any hassle at the job.

Now if you have identified the machinery and you are not sure if you would like to purchase or lease.

There are several questions that you should ask yourself before making the decision for a purchase.

If the machinery or equipment that you need is not expected to be of use for a longer period of time or the job doesn’t have the use of machinery or equipment redundantly, leasing can be a better option for you.

Some equipment and machinery that you need on the job may also depreciate very quickly, in this case purchasing the machinery may not be an ideal deal for your business.

So what you should consider for yourself is whether the machinery or equipment that you are looking for is positive or negative equity.

Considering all these facts you can look forward to leasing machinery.


Factors on which you should finance to purchase equipment

Purchasing the machinery or equipment is ideal when you have the redundant need for the tools at work or on the job.

Financing equipment will be beneficial for your business in the long run if the equipment you need has regular use such as manufacturing or construction.

The cost of equipment and machinery come at a heft price, so even if you have the cash flow, it is better to go for long term financing option that will not hamper your cash flow and at the same time, you will have the machinery to increase our efficiency and productivity.

Depending on the type of equipment and machinery and your payoff terms amount may vary depending on the term of loans.

Even if it is used equipment or machinery often the cost of purchasing is still high depending on the type of machinery.

So one important thing you should consider while financing used equipment or machinery is whether it is worth the cost and consider checking the equipment on certain parameters

    • Miles drove
    • Maintenance history
    • Record for Hous of services
    • Breakdown history
    • Consumption of power etc.

Considering these parameters will ensure that you are safe for implementing used machinery at the job.


How do you decide on the term of the loan for equipment financing?

As you know there are short term loans and long term loans, so how do you decide which is better for you.

If you already have the cash, it is still a better deal to finance the equipment you want for your business because that will balance your cash flow in the business without having any shortage.

However, deciding on a long term long and short term loan can be overwhelming either you have cash or you don’t have any cash on hand, because financing is the only option.

So depending on the interest rate and the amount of cash you have or not you will be able to decide what is the term to consider so that you can pay your monthly installments easily without burdening yourself.

A short term loan can be for a period of 6 months whereas a long term loan may run for 12, 24, 36, or even beyond depending on the value of the equipment.

Some like short term loans, because a short term long may have a lower interest rate but your monthly installment can be a bit heavy.

On the other hand, long term loans may have a higher rate of interest but it is easy to pay your monthly installments.

commercial equipment financing


Apply for Commercial Equipment Financing and Loans

At Singh Lending Solutions, we know buying new equipment isn’t always an option.

We take pride ourselves in striving to provide you with the fastest turnaround possible because we know your time is valuable.

The more information we have up front, the faster we can make a decision and get you back to running your business and using your newly purchased equipment.

So we work with you to find a financing solution that works for your specific type of business

Flexible payment schedules and financing options make it easier for you to get the commercial equipment you need.

Simply fill out our simple online application form to get started today and one of our business consultants will contact you to learn more about your business.

Get the lowest interest rates, calculate EMI,  check eligibility, get instant e-Approval, and other special offers.

We also look forward to helping you in your endeavor to get the equipment you need 🙂

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