Purchasing an excavator is a major financial commitment, so it’s essential to familiarize yourself with the buying process and make a well-informed choice.  Below is a general guide to help you navigate buying and financing an excavator:

• Determine Your Needs: Before buying a excavator, you need to determine the type of excavator you need for your current and future projects. There are several types of excavators available, including crawler excavators, wheel excavators, dragline excavators, mini excavators and skid steer excavators. Each type of excavator has its own advantages and disadvantages, so it’s important to choose the one that is best suited for your short and long term needs.
  
  
• Choose an Excavator Dealer: Once you have determined the type of excavator you need, you should choose a reputable dealer. Look for a supplier that has experience in the industry and offers quality excavators. You can ask for referrals from other contractors or search online for reviews and ratings.
  
  
• Shop the Auctions: Purchasing a used excavator at an auction can be a more affordable option for those on a tight budget. However, it is important to thoroughly inspect the excavator before making a purchase to ensure it is in good working condition. Depending on the age of the excavator, most lenders will finance excavators purchased at an auction house.

• Check the Excavator’s Condition: Before finalizing the purchase, it’s important to check the excavator’s condition thoroughly. You should inspect the excavator’s structural integrity, mechanical components, electrical system, and safety features. If possible, you should also test the excavator’s performance to ensure it’s in good working condition.
  
  
• Determine the Total Cost: In addition to the purchase price of the excavator, you should also consider the cost of transportation, installation, maintenance, and insurance. These costs can add up quickly, so it’s important to factor them into your budget.
  
  
• Choose a Financing Option: Once you have determined the total cost of the excavator, you should consider your excavator financing options. You can choose to pay for the excavator in cash, obtain a loan from a bank or financial institution, lease or rent the excavator.
  
  
• Cash Payment: If you have sufficient cash reserves, you may choose to pay for the excavator upfront. This option provides the advantage of avoiding interest payments and owning the excavator outright.
  
  
• Bank Loan: If you don’t have enough cash reserves, you may obtain a loan from a bank or financial institution. The loan amount and interest rate will depend on your credit score, business history, and collateral. You should compare the interest rates and terms of different lenders to choose the one that suits your needs.
  
  
• Lease: If you don’t want to commit to a long-term investment, you can choose to lease the excavator. Leasing provides the advantage of lower monthly payments and flexibility to upgrade or return the excavator at the end of the lease term. However, you won’t own the excavator at the end of the lease, unless the lease has end of term purchase options.
  
  
• Finalize the Purchase: Once you have chosen the financing option, you should finalize the purchase. You should review and sign the purchase agreement, financing agreement, and any other legal documents. You should also make the necessary payments and obtain the necessary permits and insurance.
  
  
• Maintenance and Operation: After buying your excavator, it’s important to maintain and operate it properly. You should follow the manufacturer’s recommendations for maintenance, hire qualified operators, and ensure the excavator is operated safely and efficiently. This will help prolong the lifespan of the excavator and minimize downtime and repair costs.

Should I Buy a New or Used Excavator?

The decision to buy a new or used excavator depends on a variety of factors, including your budget, the purpose of the excavator, the expected usage, and the availability of financing.

If you have a higher budget and require a excavator with the latest technology, a new excavator may be the better option. New excavators often come with warranties and maintenance packages, which can give you peace of mind and ensure that the excavator operates reliably. Additionally, a new excavator can offer the latest safety features and meet the most current industry standards.

However, if your budget is more limited or you don’t need the latest technology, a used excavator could be a more cost-effective option. Used excavators are often significantly cheaper than new excavators, which can save you a lot of money upfront. Additionally, used excavators that have been well-maintained and inspected can still provide reliable and safe operation.

Ultimately, the decision to buy a new or used excavator will depend on your specific needs and circumstances. Before making a decision, you should thoroughly research the options available to you, consult with experts in the field, and weigh the pros and cons of each choice.

Popular Websites to Buy Excavators:

When purchasing an excavator, several websites offer a wide selection of new and used machinery. Here’s a list of some of the most popular websites to buy excavators:

•  MachineryTrader.com – One of the most comprehensive platforms for buying and selling construction equipment, including new and used excavators from various manufacturers.

•  RBAuction.com – Ritchie Bros is a global marketplace for heavy equipment, including excavators. Ritchie Bros. holds online and live auctions and has a massive inventory from top brands.

•  IronPlanet.com – IronPlanet specializes in used heavy equipment, offering detailed inspection reports, bidding options, and buy-it-now features for a wide range of excavators.

•  EquipmentTrader.com – Offers a marketplace for new and used heavy equipment, including excavators, with a focus on local listings.

•  CatUsed.cat.com – Caterpillar’s official used equipment website, featuring high-quality used excavators, often with warranty options.

•  MyLittleSalesman.com – A well-established marketplace for construction equipment with listings for new and used excavators from various dealers and private sellers.

•  Facebook.com/Marketplace – A leading marketplace for private party equipment sales.

Each of these websites offers different buying options, from direct purchases to auctions, providing flexibility for different needs and budgets. It’s always a good idea to do your research and compare prices and features before making a purchase. Additionally, be sure to check the seller’s reputation and read customer reviews before making a purchase to ensure that you are getting a quality excavator.

Excavator Financing Options:

There are several financing options available for companies looking to purchase an excavator:

• Bank Loans: Traditional bank loans are a common financing option for purchasing an excavator. Banks typically offer competitive interest rates and repayment terms that can range from several months to several years.

• Equipment Financing: Some lenders specialize in providing financing for equipment purchases, including excavators. These lenders may offer more flexible repayment terms or better rates and terms compared to other financing options.

• Equipment Leasing: Leasing an excavator can be a cost-effective way to access the equipment without a large upfront investment. Leasing terms can range from short-term rentals to long-term leases, and some may include maintenance and repair services.

When considering financing options for an excavator purchase, it is important to carefully evaluate each option and compare interest rates, repayment terms, and any additional fees or charges. It may also be helpful to consult with a financial advisor or accountant to determine the best financing option for your specific situation.

Read here - the original blog post from September 29. 2024.

Buying a crane can be a significant investment, so it’s important to understand the process and make an informed decision. Here is a complete guide to buying and financing a crane:

1. Determine Your Needs: Before buying a crane, you need to determine the type of crane you need for your current and future projects. There are many types of cranes available, including tower cranes, mobile cranes, crawler cranes, and overhead cranes. Each type of crane has its own advantages and disadvantages, so it’s important to choose the one that is best suited for your short and long term needs.
   
   
2. Choose a Crane Supplier: Once you have determined the type of crane you need, you should choose a reputable supplier. Look for a supplier that has experience in the industry and offers quality cranes. You can ask for referrals from other contractors or search online for reviews and ratings.
   
   
3. Check the Crane’s Condition: Before finalizing the purchase, it’s important to check the crane’s condition thoroughly. You should inspect the crane’s structural integrity, mechanical components, electrical system, and safety features. If possible, you should also test the crane’s performance to ensure it’s in good working condition.
   
   
4. Determine the Total Cost: In addition to the purchase price of the crane, you should also consider the cost of transportation, installation, maintenance, and insurance. These costs can add up quickly, so it’s important to factor them into your budget.
   
   
5. Choose a Financing Option: Once you have determined the total cost of the crane, you should consider your crane financing options. You can choose to pay for the crane in cash, obtain a loan from a bank or financial institution, or lease the crane.
   
   
6. Cash Payment: If you have sufficient cash reserves, you may choose to pay for the crane upfront. This option provides the advantage of avoiding interest payments and owning the crane outright.
   
   
7. Bank Loan: If you don’t have enough cash reserves, you may obtain a loan from a bank or financial institution. The loan amount and interest rate will depend on your credit score, business history, and collateral. You should compare the interest rates and terms of different lenders to choose the one that suits your needs.
   
   
8. Lease: If you don’t want to commit to a long-term investment, you can choose to lease the crane. Leasing provides the advantage of lower monthly payments and flexibility to upgrade or return the crane at the end of the lease term. However, you won’t own the crane at the end of the lease, unless the lease has end of term purchase options.
   
   
9. Finalize the Purchase: Once you have chosen the financing option, you should finalize the purchase. You should review and sign the purchase agreement, financing agreement, and any other legal documents. You should also make the necessary payments and obtain the necessary permits and insurance.
   
   
10. Maintenance and Operation: After buying your crane, it’s important to maintain and operate it properly. You should follow the manufacturer’s recommendations for maintenance, hire qualified operators, and ensure the crane is operated safely and efficiently. This will help prolong the lifespan of the crane and minimize downtime and repair costs.

Should I Buy a New or Used Crane?

The decision to buy a new or used crane depends on a variety of factors, including your budget, the purpose of the crane, the expected usage, and the availability of financing.

If you have a higher budget and require a crane with the latest technology, a new crane may be the better option. New cranes often come with warranties and maintenance packages, which can give you peace of mind and ensure that the crane operates reliably. Additionally, a new crane can offer the latest safety features and meet the most current industry standards.

However, if your budget is more limited or you don’t need the latest technology, a used crane could be a more cost-effective option. Used cranes are often significantly cheaper than new cranes, which can save you a lot of money upfront. Additionally, used cranes that have been well-maintained and inspected can still provide reliable and safe operation.

Ultimately, the decision to buy a new or used crane will depend on your specific needs and circumstances. Before making a decision, you should thoroughly research the options available to you, consult with experts in the field, and weigh the pros and cons of each choice.

Popular Websites to Purchase a Crane:

There are several websites where you can purchase a crane. Here are some of the most popular:

1. CraneNetwork.com – This is a great website for buying and selling new and used cranes of all types. It has a vast inventory of cranes from trusted brands and sellers.
   
   
2. Bigge.com – Bigge Crane and Rigging Co. is one of the largest crane companies in the world, and their website is a great place to buy or rent a crane. They have an extensive inventory of cranes of all sizes and types.
   
   
3. Mascus.com – This is a global marketplace for heavy machinery, including cranes. You can find both new and used cranes from sellers all over the world.
   
   
4. IronPlanet.com – This is another website that sells both new and used cranes, as well as other heavy equipment. They offer auctions and fixed-price listings, so you can find the right crane at the right price.
   
   
5. EquipmentTrader.com – This website has a large inventory of cranes for sale from dealers and private sellers. You can search by type, brand, location, and other criteria to find the perfect crane for your needs.

It’s always a good idea to do your research and compare prices and features before making a purchase. Additionally, be sure to check the seller’s reputation and read customer reviews before making a purchase to ensure that you are getting a quality crane.

Crane Financing Options:

There are several financing options available for businesses looking to purchase a crane:

1. Bank loans: Traditional bank loans are a common financing option for purchasing a crane. Banks typically offer competitive interest rates and repayment terms that can range from several months to several years.
   
   
2. Equipment financing: Some lenders specialize in providing financing for equipment purchases, including cranes. These lenders may offer more flexible repayment terms or better rates and terms compared to other financing options.
   
   
3. Leasing: Leasing a crane can be a cost-effective way to access the equipment without a large upfront investment. Leasing terms can range from short-term rentals to long-term leases, and some may include maintenance and repair services.
   
   
4. Equipment auctions: Not really a financing option, but purchasing a used crane at an auction can be a more affordable option for those on a tight budget. However, it is important to thoroughly inspect the crane before making a purchase to ensure it is in good working condition. Depending on the age of the crane, most lenders will finance cranes purchased at an auction house.

When considering financing options for a crane purchase, it is important to carefully evaluate each option and compare interest rates, repayment terms, and any additional fees or charges. It may also be helpful to consult with a financial advisor or accountant to determine the best financing option for your specific situation.

Read the original blog post from April 20. 2023 here.

The machine tools industry received some positive news in 2017 as it was the firstyear to see positive gains in consumption. Reporting firm Statista found that consumption in 2017 was 1.6% more over the previous year. Although this seems like a small blip on the radar, with the constant ups and downs of the machine tools industry, any shift in the right direction is always celebrated.  

This is just the beginning, in fact, according to that same report, experts are predicting positive gains in consumption over the next few years which is great news for machine tool lenders and buyers in the U.S. and across the world.  

The Top Five Machine Tools Lenders 

EDA recently published its annual report on the machine tool industry analyzing the most successful lenders and buyers alike. According to their research, the top five machine tool lenders are the following:  

1.     CNC Associates Inc.                
2.     Banterra Bank            
3.     DMG Mori Seiki USA              
4.     Ellison Tech                            
5.     Hartwig Inc.                            

All five of these lenders accounted for 42.6% of the total units sold. Of all of the top 20 lenders that EDA followed, they filed a combined 481 new machine tool related financial statements in November 2017.  

Number one on this list, CNC Associates, had a great year as they accounted for 15% of the total share with 72 units sold in EDA’s report.  

Additionally, industry research firm AMT reported that October 2017 machine tool orders were up 7.6% over October 2016’s numbers.  

Who’s Buying? 

EDA also compiled a list of the top five buyers in the U.S. as follows: 

1.     Kennametal                     Pennsylvania, USA                  16
2.     TE Connectivity            Pennsylvania, USA                   9
3.     Aerofit                               California, USA                          8
4.     C&C Machine Tool     Minnesota, USA                         8
5.     FMI Holdings                Texas, USA                                    8 

Buyers come from a variety of different industries, and as we mentioned, the success of various manufacturing sectors ultimately drives the success of the machine tools financing market as well. 

Explaining the Ups and Downs 

Over the last few decades, the machine tools market has seen many changes that seem to happen for no apparent reason. Most recently, IndexBox reported that the value of the entire industry in the U.S. decreased by 4.5% from 2014 to 2015. It can seem hard to determine exactly what is hurting the machine tools industry but many have pointed to a few different ideas.  

China’s Expanding Manufacturing Sector 

Many analysts believe that China’s increasing hunger for more machine tools largely drives the market and keeps the highs higher than expected and the down periods less devastating than in decades past.  

Additionally, more manufacturing overseas, in general, has given the world manufacturing industry a boost. The primary reason that more companies are investing in production abroad can largely be contributed to the near-zero interest rates over the last decade. 

Low Interest Rates  

Low interest rates caused many U.S.-based companies to invest in production overseas where the labor is cheaper. This is detrimental to the U.S. market but provides these overseas businesses a boost in their manufacturing and in turn, their machine tools purchases.  

We can’t look into a crystal ball to predict exactly what the market will do in 2018, however with industry analysts all predicting an increase in the machine tool consumption and recent shifts in economic policy, expect 2018 to be a good year for the industry.

With record-breaking lumber prices and increased volatility, how will logging companies cope?   2017 was an interesting year for the logging industry to say the least. With record-breaking lumber prices expected to continue this year and for the foreseeable future, many experts are worried that the industry could end up in limbo. With that in mind, sales are still strong with industry forecasters already releasing the latest financial data from the most significant logging equipment lenders and buyers. 

Let’s take a look at the causes for this price volatility along with some predictions for the future of the logging industry in 2018.  

Increased U.S. Import Duties 

The driving force behind these record-high prices was the initiation of new U.S. import duties on Canadian lumber. Back in November of 2017, the U.S. Department of Commerce ruled that total countervailing duties (CVD) and anti-dumping duties (ADD) of 20.83% would be levied on Canada's lumber exports. This caused not only a political strain, but Canadian companies reacted by swiftly raising their prices before the new duties took effect. 

Many were concerned how this would affect the market, and experts predicted that the price difference would ultimately get passed onto the U.S. consumer. These predictions were correct, as many importers accepted the new prices and charged U.S. customers higher prices.  

It remains to be seen how this will affect the market moving forward, but many expect that U.S. producers will start to look towards European importers in hopes to boost U.S. domestic lumber production.  

A Softwood Shortage? 

If import duties stay the same, experts forecast that by the end of the decade there won’t be enough available softwood lumber in North America to meet up with U.S. demand. Luckily, U.S. housing is entering a slow period which has put the potential supply crisis at bay for a while. Even so, the new import duties on Canadian lumber hasn’t helped the situation. To correct the issue and avoid a supply gap, U.S. importers will start importing incremental supplies of lumber and logs each year to keep up. Hopefully, the higher lumber prices will boost the supply side.  

Leading Logging Equipment Lenders in 2018 

Although we’re only a few months into the year, leading industry research firm EDA has already released some financial data for financing logging equipment. According to their data from February 2018, these are the top five equipment lenders: 

·         JOHN DEERE INDL CREDIT                                 78
·         CATERPILLAR FIN SVC CORP                           46
·         DE LAGE LANDEN FIN SVC                                 25
·         WELLS FARGO VENDOR FIN SVC LLC       18 
·         STEARNS BANK                                                          15 

What equipment types were the most popular? EDA also has data on this, detailing the top ten most common logging equipment: 

EQUIPMENT TYPE                       BUYERS           UNITS

1.     LOG LOADER                                  41,547             89,621
2.     SKIDDER                                            46,872             89,598
3.     GRAPPLE SKIDDER                     24,636             60,225
4.     CHIPPER                                             36,962             58,767
5.     FELLER BUNCHER                      18,252             43,563
6.     CRAWLR DOZER LOG             20,806             38,263
7.     STUMP CUTTER                          23,829             33,041
8.     SAWMILL                                         19,883             25,644
9.     WHEEL LDR (LOG)                     11,647             23,443
10. EXCAVATOR (LOG)                    10,087             23,435 

2018 is off to a good start for equipment, with buyers from across the U.S. financing new equipment in significant numbers.  

Conclusion 

While the prices of lumber continue to rise, many experts expect that the logging equipment will continue to see positive growth into 2019. So far 2018 is showing to be promising for both buyers and equipment lenders. While ties with Canadian exporters remains volatile, experts predict that U.S. demand will heavily rely on European imports and U.S. production expansions.

Businesses are as strong as the equipment they use to get the job done. Without reliable machinery, businesses cannot expect to finish jobs as efficiently and on time.

As you probably already know, most heavy equipment does not come cheap. For example, an average excavator costs anywhere between $100,000 and $500,000 depending on if the machine is new or used. Covering these costs can be difficult for several reasons considering most companies face cash shortages if jobs run over budget and cash flow is tied to wages, supplies and other operating expenses.

Whether you are looking to purchase new or used equipment or you opt to lease it, there is a high probability that you will want to consider financing heavy equipment to cover this huge expenditure.  

What exactly is a heavy equipment loan?

Heavy equipment loans are loans to buy or refinance heavy machinery for your business. With an equipment loan, you will own the equipment from the start of the term. Similar to a car loan, once you pay off the loan, the equipment can be used as equity to acquire other new equipment if needed for a collateral type loan.

Another scenario, at the end of the loan, you can arrange a sale leaseback agreement where you sell the equipment to the lender for cash then lease it.

Compared to most small business loans, an equipment loan can be easier to obtain given the underlying decision is based on the equipment value and your overall credit situation.

Since the equipment will be used as the primary collateral to secure the loan, you normally do not have to pledge other secondary collateral to secure financing. There can be tax benefits to owning equipment as well (consult your CPA).

How to get a heavy equipment loan or lease

- Make sure your credit profile is solid

One of the most important steps to getting a heavy equipment loan is to make sure that your personal and business credit is good. Research ahead of time and know your situation.

Got late car payments? Student loans in default? Late car payments? These things will delay or even hinder the heavy equipment loan process. Therefore, work to clean up your credit, fix any existing errors and ensure your report has no discrepancies.

- Have a solid business plan

Some lenders will look at your business plan and proforma statements to determine if you qualify for heavy equipment loan. In the business plan, describe your business extensively including the products and services. Detail the current cash flow and project a realistic yet aggressive set of goals for future growth.

Identify the socio and economic demographics of your target market and explain how your product or service will fulfill the needs of the market.

- Have cash flow statements ready

Showing the business cash coming in and going out in current terms is the best indicator to how your business is doing in the real world. Lenders consider cash flow statements when determining whether to approve a heavy equipment loan application or not.

Therefore, when applying for a loan, get your finances in order and ensure that both your business and personal financial statements are in order.  Some lenders even prefer audited or reviewed financial statements which can be well worth the expense.

We offer several heavy equipment financing programs that are designed to meet the specific need of most customers. Whether you are looking to purchase excavators for your construction business or other yellow iron, you can count on us to provide funding to acquire the equipment you need.  

Though we focus on established companies that have been in business for at least 3 years, we will also finance startups as long as they have sufficient assets to act as additional collateral for the loan. Our loan transactions range from $1 million to $55 million.

Having been in the heavy equipment finance industry for a long time ensures that our team has the experience to help you get a loan that fits your needs and is within your budget. Contact us today, let us know your requirements and we will be happy to help.