Who Can Offer New or Used Backhoe Financing?

Backhoe Financing

Do You Need Backhoe Financing?

The ability to access backhoe financing for new or used equipment can make or break a small business. You’re likely to find plenty of equipment finance companies out there to choose from, but how do you pick the right one?

Well, we asked our clients to shop around and find out what type of programs are being offered by these other equipment finance companies. Do some research on the company. A simple Google search will tell you many of the things you need to know about the company. How easy are they to find? What kind of reviews do their own clients give them? We believe that our service and our reviews from past clients speak louder than words!

The Good and Bad of Equipment Finance Companies

From our past experience, we’ve heard clients tell stories about how they were ripped off by other companies. When we dug a little deeper we found out that these equipment finance companies even charged an up front processing fee or commitment fee. Now, this isn’t completely unheard of. There are reports of companies informing the client that this is their down payment, or their first two months’ payments and processing fee.

What these customers failed to ask is whether those funds are refundable if they decide to cancel the transaction, or if the finance company can’t obtain the financing. Some of these equipment financing companies will have fine print that allows them to keep some or all of those funds. So if you are ever asked to pay anything upfront, be sure you read the fine print. Better yet, look up these equipment finance companies and read their reviews. As we said, actions speak louder than words.

Of course, there are some exceptions to the rule. For example, larger transactions do have more underwriting costs, such as pulling UCC records. Plus, when you’re speaking about transactions greater than $250,000 the financial institution wants to allot the capital in advance. And when doing so, they certainly want to make sure the client is serious about the relationship and will, therefore, at times request a commitment fee.

The Fun Part – Getting Qualified for Backhoe Financing

Now that you’re a little wiser about picking between equipment finance companies, the next step is to see what you qualify for. As you already know the cost for a new or used backhoe can be way up there. Finding one with low hours and all the right amenities might be a better cost-saving strategy!

We encourage our clients to do some research on the equipment they are interested in. This helps them get an idea of what their budget needs to be. You might find one for sale at a dealer location, or even through a private party seller.

When it comes to actually financing the equipment, however, there’s a huge difference between buying from a dealer versus a private party. To learn more about the two, we have some great info over here.

3 Step Backhoe Financing

  1. Find out what amount you are prequalified for prior to getting your heart set on a certain backhoe. Even better, get pre-qualified before you even begin searching. We’re happy to provide this service for you. 888-565-6692
  2. Find several backhoes that you like, at a range of different prices. Having at least one high, middle, and the low choice will keep all your options open. Getting familiar with the prices in this manner will help you determine whether to buy a new or used backhoe.
  3. Determine your ideal monthly payment budget along with your budget max and minimum. Surely you have an idea and some projections on how much your company will potentially make by adding this to your business. Keep in mind, we’re not looking for business plans nor are we asking for projections, but it’s a good idea to have these figures ready so you can go over the numbers and the monthly payments.

If you’re prequalified and empowered with knowledge of both an ideal price and budget, then the rest is just paperwork.

Are You Eligible for Backhoe Financing?

Let us help you determine whether new or used backhoe financing is right for you and your business. The easiest way to accomplish this is by either calling our office at 888-565-6692 and speaking with one of our advisors, or you can chat with our help desk. Our help desk is typically open from 5 am PST to 11 pm PST, 7 days a week. Once you’ve found out what you are eligible for, now comes the fun part…shopping around! Plus, don’t forget, we have a wide variety of programs for all credit grades, including start-up businesses.

(888) 565-6692

Backhoe Financing – Monthly Payment Examples

Depending on your scenario, you will see that there are programs that will require anywhere from a zero down payment to some that may require as high as a 50% down payment. So we’ll list a few examples to give you an idea of what you can expect. As you might already know, there’s a lot that goes into pricing and qualifying a transaction:

  • Length of time in business
  • Credit history & credit score for the business owner(s)
  • Equipment type
  • Sometimes income will also come into play

Payments & Terms

Example A: Used Backhoe Loader $35,000
  • 5 Years’ Time in Business, Excellent Credit, Good Business Credit
  • Zero Down, 1st & Last Months Payments Due at Closing
  • 36 months: $1,199
  • 48 months: $935
  • 60 months: $769
Example B: Used Backhoe Loader $35,000
  • Startup Business, Average Credit, No Business Credit
  • Zero Down, 1st & Last Months Payments Due at Closing
  • 36 months: $1,445
  • 48 months: $1,185
  • 60 months: $1,029
Example C: Used Backhoe Loader $35,000
  • Startup Business, Less than Average Credit, No Business Credit
  • Zero Down, 1st & Last Months Payments Due at Closing
  • 36 months: $1,719
  • 48 months: $1,479
  • 60 months: $1,349
Example D: Used Backhoe Loader $35,000
  • Anytime in Business, Poor Credit, No Business Credit, Income Qualifications
  • 10% Deposit Due at Closing
  • 36 months: $1,715
  • 42 months: $1,610
  • 60 months: $NA
Example E: Used Backhoe Loader $35,000
  • Anytime in Business, No Recent Poor Credit, No Business Credit, Income Qualifications
  • 10% Deposit Due at Closing
  • 36 months: $1,635
  • 48 months: $NA
  • 60 months: $NA
Example F: Used Backhoe Loader $35,000
  • Anytime in Business, Very Poor Credit, No Business Credit, Recent Bankruptcy & Repo Ok
  • 50% Deposit Due at Closing
  • 36 months: $1,035
  • 48 months: $915
  • 60 months: $NA

Which One Are You?

Now that you have an idea of where your down and monthly payments might fall, which backhoe financing example do you fall in?

Please keep in mind, these payments and terms are not set in stone. There are so many variables that can improve your pricing, but this will give you a basic idea of where you might be. There are more details that go into qualifying, so it’s always best to either call our office and speak to one of our advisors, or you can use our chat help desk. If you look at the lower right of your computer screen, you’ll see a purple box that will allow you to chat with one of our professionals.

Feel free to call us to learn more about backhoe financing anytime at 888-565-6692.

Who Can Offer New or Used Backhoe Financing? | First Capital Business Finance – Equipment Finance Companies