Heavy Equipment Financing for Small Business Owners by Liberty Capital Group, Inc.
Since 2004, Liberty Capital has been at the forefront of providing flexible and tailored heavy equipment financing solutions for small business owners in need of heavy equipment. Whether you’re looking to lease or finance new or used heavy equipment, heavy machinery, yellow iron, commercial trucks, our expertise and dedication funding advisors will ensure you get the best possible approval, terms and funding. Liberty Capital’s first funding was an used excavator in 2005.
Application Only up to $250K for Heavy Equipment Financing.
Liberty Capital offers a streamlined financing option for heavy equipment purchases called the “Application Only” program. This program allows businesses to secure up to $250,000 in financing for new or used heavy equipment with minimal documentation and a fast approval process.
Low Doc Equipment Financing Requirements:
v No Financials or Tax Returns up to $250k (for well qualified clients)
v 3-5 years in business
v Good Strong: Paydex and Paynet History
v Credit Score of 680+
v Comparable Credit
v No prior business or personal liens, BK’s and judgments.
v Qualified New or Used Heavy Equipment, Machinery and Commercial Trucks.
Benefits of Leasing Heavy Equipment
Hedge Against Inflation
Leasing heavy equipment can effectively serve as a hedge against inflation by allowing businesses to:
- Fixed Payment Terms: Lease agreements typically come with fixed monthly payments, which means your costs remain consistent over the lease period. This protects your business from inflationary pressures that could increase the cost of purchasing equipment outright in the future.
- Small, Manageable Payments: By making smaller payments over time rather than a large upfront investment, you can preserve cash flow and allocate resources more effectively to other areas of your business. While the value of the dollar goes down due to inflation, your payment will remain if not becomes cheaper and cheaper, relatively speaking.
Tax Benefits of Leasing
Leasing heavy equipment can offer several tax advantages, including:
- Section 179 Deduction: While Section 179 of the IRS tax code is commonly associated with purchasing equipment, leasing can still provide tax benefits. Depending on the lease structure, you may be able to deduct lease payments as a business expense, reducing your taxable income.
- Operating Expense Deductions: Lease payments are often considered operating expenses, which can be fully deductible. This can lead to substantial tax savings and improved financial health for your business.
- Avoiding Depreciation Recapture: Leasing can help you avoid the complexities and potential tax liabilities associated with depreciation recapture that come with selling owned equipment.
Advantages:
- Conserve Capital: Leasing preserves your working capital. Depreciating assets should be finance as much as possible to keep cash on hand. Cash is king, allows you to be nimble. If your asset is tied up in some old equipment, you’re unlikely to be able to cash out of it.
- For the tax benefits: Leasing allows you to use the most current and efficient equipment while benefiting from “Uncle Sam”. There are many ways you can deduct your purchase or financed equipment.
- Flexibility: We call it “equity builder.” Heavy equipment financing can build assets when otherwise you wouldn’t have unless you had cash to pay it outright. At the end of the lease you can own it with $1 Buyout Leases. You will have equity and if you decide to sell, you will get your capital but might pay capital gain tax, check your CPA. If you want to grow, you can choose purchase, or return the equipment, or lease another equipment.
Disadvantages:
- Monthly Payment: Leasing does not build equity in the equipment until after the term is completed, meaning you do not accumulate an asset that can be sold or leveraged while you’re still making payments. You can sell and maybe able to recoup the initial investment.
- Higher Long-Term Costs: Over the long term, leasing can be more expensive than purchasing due to continuous payments without gaining ownership.
Compare Business Loans with other Financing Options
Based on your Credit and business profile, you can rest assure that working with Liberty Capital will give you the right product. Unlike our competitors, they’ll put you on merchant cash advance because they make more money when you could have used equipment financing or business loans but when that’s the only thing they offer that’s the only thing you’re going to get. You’re not going to know what you actually should have gotten. It’s most of the time you get put in the wrong product
Feature | Business Loans | Merchant Cash Advance | Equipment Financing |
Ownership | 50% | 50% | 100% |
Origination, Admin Titling Fees | Low | Low to moderate | Varies |
Monthly Payments | Monthly, Daily, Weekly | Daily / Weekly | Monthly |
Credit Minimum: | 600 | 500 | 650 |
Fund Disbursements | Client | Client | Vendor |
New/Used Equipment | n/a | n/a | Yes |
Maximum Term | 24 months | 12 months | 60 months |
Time in Business | 2+ years | 6 months | Startup Ok |
Interest Rates | Moderate | High | Low |
Application Only | $150K | $250K | S250K |
Funding Time | Same Day Funding | Same Day Funding | 1- 5 days |
Buying - Paying Cash or Financing
Advantages:
- Build Equity: Purchasing equipment builds ownership equity, turning the equipment into an asset on your balance sheet. This can enhance your company’s financial strength and borrowing capacity.
- Depreciation Deductions: You can take advantage of depreciation deductions, including bonus depreciation and Section 179, to reduce taxable income.
Disadvantages:
- High Initial Cost: Buying equipment requires a significant upfront investment, which can strain cash flow and limit capital available for other business needs.
- Maintenance and Obsolescence: Owning equipment means you are responsible for maintenance and risk of obsolescence, potentially leading to higher long-term costs.
- Cash can be used for higher opportunity of capital. Savings vs Revenue.
What you get when you Finance Heavy Equipment with Liberty Capital?
- Lower Initial Costs: Leasing requires less upfront capital compared to purchasing, preserving your cash flow.
- Flexibility: Lease terms can be tailored to match the operational needs and financial situation of your business. You can finance it for 3 years if work is only for 3 years.
- Access to Latest Technology: Leasing allows you to upgrade to newer, more efficient models without a substantial financial commitment.
- Tax Advantages: Lease payments may be tax-deductible as operating expenses, reducing your taxable income.
- Maintenance and Repairs: Often, lease agreements include maintenance and repair services, reducing downtime and unexpected costs.
- Hedge against Inflation: Allows you to make small payments today for a fixed payment without having to lay out huge capital upfront.
- Monthly Payment: Terms up to 5 years for new or used heavy equipment with low fixed monthly payment.
- $0 Down Payment: For qualified clients, down payment may not be required except for start ups
- $0 Security Deposit: For qualified clients, down payment may not be required – except for start ups
- 90-day Deferred Payments: No payment for the first 90 days.
- Low Admin Fees: Admin Fee, doc fee and titling fee varies for each transaction.
Qualifications for Heavy Equipment Financing
To qualify for heavy equipment financing with Liberty Capital, small business owners typically need to:
- Demonstrate a stable business history.
- Provide financial statements and tax returns anything over $100K to $250K
- Have a reasonable credit score.
- Offer a detailed business plan outlining the use of the equipment.
- Down payment or Security Deposit might be required for less than perfect credit and stat ups.
Ask About Our Heavy Equipment Financing Promotion:
Liberty Capital accommodates clients with to financing options that will yield very little working capital outlay.
Here’s our current promotion to save on cashflow.
- $99 for the first 6 months: Requires only $99 to start.
- 90-day Deferred Payments
- $0 Down Equipment Financing
- Seasonal payments
- Annual payments
What you get when you Finance Heavy Equipment with Liberty Capital.
Fast simple online application. No financials up to $250,000. Corp-only (no personal guarantee).
Here are the benefits to financing your next heavy commercial trucks and equipment.
- Up to 120% equipment cost
- Up to $5,000,000 with financial statements
- Next-day funding approval
- 12 – 84 month fixed payment terms
- No down payment required for qualified borrowers.
- Lowest Rates in the industry for qualified borrowers
- Eligibility for all new and used equipment financing.
- Will not appear on personal credit reports.
- No pre-payment penalties
- Other off-balance sheet financing – Fair Market Value, 10%
- Lease – $1 buyouts.
- Equipment Finance Agreement
Types of Heavy Equipment Financing and Leasing
- Off balance sheet financing – Fair Market Value, 10% FMV
- Capital Lease – $1 buyouts.
- Equipment Finance Agreement
- Lease Rental Purchase Option (RPO)
Types of Financing Available from Liberty Capital.
Liberty Capital offers a variety of financing programs to suit different needs, including:
- Lease-to-Own Programs: Allows businesses to eventually own the equipment after fulfilling lease terms.
- EQUIPMENT FINANCE AGREEMENT or EQUIPMENT LEASE: Traditional financing with fixed monthly payments and terms up to several years.
- Working Capital Loans: Short-term loans to cover operational costs or down payments on equipment.
- Seasonal Payment Plans: Customized payment schedules to match the seasonal revenue patterns of your business.
- Term Loans: Term loans allows you to have a predictable loan term to 3-5 years.
- Factoring: Capital upfront from your account receivable to cover operational costs or down payments on equipment.
- Commercial Loan: Including SBA 504, we are a commercial loan broker for 4+ unit commercial property needing commercial loans purchase, refi, ground up funding or condo conversation, bridge loans on commercial property, condos and apartments.
- Merchant Cash Advance: Most for un-bankable type of borrowers. Pure based on purchase of future revenue. Revenue based loan. Revenue purchase agreement funding.
- Commercial Truck Financing: As long as your business operates some form of vehicle or machinery, they can be considered equipment. We can finance Sprinter Vans to long haul commercial trucks for owner and fleet operators. Across various industries, utility truck new or used can easily be financed no matter what your credit as long as you can put a down payment.
Types of Heavy Equipment Available for Financing
Our financing solutions cater to various industries, including:
- Construction: Excavators, bulldozers, backhoes, loaders, and cranes.
- Agriculture: Tractors, combines, balers, and sprayers.
- Forestry: Feller bunchers, skidders, and harvesters
- Mining: Drills, excavators, and haul trucks
- Manufacturing: Forklifts, conveyors, and presses.
Liberty Capital can finance a wide range of heavy equipment, such as:
- Yellow Iron: Bulldozers, excavators, and loaders which typically maintain high resale values and depreciate slower than other equipment.
- Agricultural Machinery: Tractors, combines, and other farming equipment.
- Industrial Equipment: Forklifts, cranes, and other machinery essential for manufacturing and warehousing.
- Utility truck, commercial trucks, delivery trucks and commercial vehicles.
- Warehousing Equipment and (CNC) Heavy Machinery (VMC)
Benefits of Working with Liberty Capital.
Leasing heavy equipment with Liberty Capital offers a practical solution for small business owners looking to manage costs, access tax benefits, and maintain operational flexibility.
Equipment financing can be a complicated process, so you must not do it alone. Working with an equipment loan broker who knows how to package the best approval will only help get you the right financing.
While heavy equipment leasing provides advantages like hedging against inflation and preserving cash flow, it is essential to weigh these benefits against the potential long-term costs and lack of asset ownership. By understanding the full range of financing options based on your company, personal profiles, and financial standing, you can make informed decisions, save time without having to bank hop not knowing the lender you applied at places all does A Credit, but you are a C credit? How would you know? Let the expert do the work for you so you can go back doing what you’re good at, running your business.
We are on your side, your best support for your business’s growth and financial health. Contact Liberty Capital today to explore the best heavy equipment financing options for your business needs.
How To Apply!
Liberty Capital is committed to helping small business owners acquire the heavy equipment they need to thrive. So we make it simple for you to apply. Simple Application With flexible financing options, competitive rates, and a deep understanding of the industry, we provide the tools you need to build a successful future. Contact us today to learn more about how we can assist with your heavy equipment financing needs.
