Why Should You Prefer to Finance Your Forestry Equipment?
You must have finally decided which logging equipment can yield greatest return on your investment and which model will be the best for your requirement. Also, you may have an idea as to which model has the best reviews.
You are now ready to obtain the equipment and now you are in second phase of your research on how to get it.
Either you can buy or finance your equipment. Buying can provide you instant ownership but needs significant amount of upfront cash. Financing, through either a lease or by taking loan, will offer you many advantages.
Let us see what are the advantages of financing an equipment like remorque à bois which means the wood loading trailer.
- Increased efficiency
Logging and forestry equipment will take a beating as average lifespan of any forestry equipment will last for 12,000 to 20,000 hours. In order to put it in your perspective, all construction equipment will last on an average 34% longer than any forestry equipment.
Though few repairs on such forestry equipment will be inevitable and the frequency of your repair will increase as equipment will age, which will chew into your profit and productivity.
New equipment can cut down your repair cost and enhance efficiency. Financing such equipment may keep your cash flow available to upgrade additional equipment and further increase efficiency.
- Finance over long-term
Usually, most companies prefer to finance for easing their cash flow pressure due to equipment acquisition. All such forestry equipment is not so inexpensive either.
By financing high cost over 4 or 5 years will ease the impact of the equipment cost.
There are few finance companies that offer attractive options for financing which can also reduce the impact even further, by offering financing terms for more than 6 years.
- Skip payments for various seasonal trends
In Canada, seasonal factors can influence forestry industry differently. As the production slows down during winter periods, it will make sense to structure the equipment payments accordingly.
During seasonal lull period, you can also skip payments, instead, you will spread your yearly cost over rest of the payments, thus can save money when your business is dull.
- Finance used equipment
Most of the companies may not afford upgrading new equipment after every few years. So, prefer used equipment. Financing any used equipment will provide all the advantages of financing a new one but with more affordable payments.
Different financing companies may also have different criteria to judge each used equipment but few companies also finance old equipment for 6 years.