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NGExpert financial copywriter
Page written by Chris Godfrey. Last reviewed on October 22, 2024. Next review due January 1, 2025.
Factories, warehouses, airports, seaports, logistics centres and more – in many types of location you’ll see specialised machinery keeping business humming. Material handling equipment is designed to move all kind of goods and materials from A to B, but for smart business owners, these expensive machines all have one thing in common: The best way to buy them is with an equipment lease or loan.
Material handling equipment finance is a form of equipment financing, Suitable for businesses in many different sectors – manufacturing, agriculture, food processing, construction, logistics and more – this type of financing allows companies to acquire specialist machinery without making a major dent in cash reserves. By spreading the cost of expensive machinery over time, material handling equipment finance helps businesses preserve working capital and better manage their cash flow while ensuring access to essential machinery.
If it’s used to move goods and materials from one place to another, you can almost certainly finance it with a material handling equipment loan. Finance machinery as varied as:
Yes, although some lenders may place restrictions on the types of used materials handling equipment you can finance and may also set a limit on the number of operating hours the machine has worked.
Depending on the type of loan you are seeking, material handling equipment finance can be complicated. The sum you can borrow, the interest rate you’ll pay and other terms and conditions will vary from one lender to another. It therefore makes sense to shop around before settling on a deal. You can do this by approaching banks, credit unions and online lenders one by one, or you can use the services of a loan marketplace that will immediately introduce you to a choice of financing offers from a range of lenders. Some marketplace platforms can also give you advice and help you with the application process. This can be especially useful for borrowers who have never taken out an equipment loan before.
Although every lender will have their own qualifying requirements, borrowers will usually need the following to obtain a material handling equipment loan:
Yes. Although it’s never easy to obtain business loans with less-than-stellar credit, it’s not impossible. Three options to consider:
Lastly, if you lack collateral and cannot bring in a co-signer, you may be able to obtain funding from lenders who specialise in loans for borrowers with bad credit. However, be aware that this type of borrowing is usually more costly than regular business lending and the sums you may be able to borrow will often be much smaller.
Just because you can’t qualify for standard equipment finance, it doesn’t mean you can’t obtain funding for your business. Alternative financing options include:
Available from high-street and alternative lenders. These loans typically come with more relaxed qualifying rules and can be obtained on a secured or unsecured basis.
Business grants are free money, they do not have to be repaid if you spend them properly and in most cases, funders do not consider credit scores when considering applications. The good news is, there are hundreds of grants available across Ireland, and they are provided by local governments, as well as foundations, non-profits and other organisations. The downside to this route is the fact that small business grants are usually highly competitive, slow to fund and often come with strict qualifying rules.
No matter if you’re seeking your first material handling equipment loan or you’re a seasoned borrower, working with business finance experts can make all the difference when applying for funding. Contact Swoop to discuss your borrowing needs, get help with your application and to compare high-quality equipment financing from a choice of lenders. Let us carry the load for you. Register with Swoop today.
Written by
Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance.
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