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Heavy
Equipment Financing - Traditional and non-traditional lending
Heavy
equipment financing by means of a traditional or non-traditional loan can still
be a more sensible route than a lease.
Here are just a few reasons why:
Equity/Ownership Whether it's a conventional term-loan, a line of credit
(secured or unsecured) or an asset-based loan, the key factor is ownership. You
enjoy the benefits of ownership and the future flexibility to utilize accrued
equity to leverage working capital when needed.
Low Obsolescence
Heavy/construction equipment is not as threatened by obsolescence as equipment
in industries such as technology or medical. With proper maintenance, heavy/construction
equipment can more than outlast the cost-benefits of a lease.
First
- Year Expensing Purchasing may allow you to deduct up to $24,000 worth of
equipment in the year it is purchased (as part of first-year expensing); anything
above that amount gets depreciated over several years. With the first-year expense
deduction, the "real cost" of the equipment is greatly reduced.
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