An excavating loan is a loan made to provide funding for the purchase of excavating equipment. Excavating equipment is used in construction projects such as commercial and residential buildings, roads, bridges and general-purpose municipal facilities. The cost of excavating equipment can be cost prohibitive for most business in need of the machines. Having the ability to take out an excavating loan helps relieve the business of the burden of using current capital or cash flow in order to finance the purchase of an excavating loan.
Providers of an Excavating Loan
The lenders that provide businesses with excavating loans include banks, private finance companies, an equipment dealer or manufacturer and any other private lender. All of these options are available for the funding of an excavating loan. These loans are written for the exclusive purchase of excavating equipment used by the business. The terms and conditions of an excavating loan are expressed in the loan agreement, which is the contract between the borrower and the lender.
Interest Rates for an Excavating Loan
The interest rates charged on an excavating loan is dependent upon the credit history of the loan borrower. Borrowers with a good or excellent credit scores receive loans that have a much favorable loan interest rate. Those borrower’s with low, poor or bad credit receive an excavating loan with higher interest rates. This means that poor credit borrowers will pay a higher cost for the loan.
Applying for an Excavating Loan
An excavating loan is done in the same manner that other types of business loans are. The borrower expresses an interest in purchasing excavating equipment based on the cost of the equipment. The lender analyses the terms and conditions of the loan to determine the loan interest rate and the amount available to purchase excavating equipment.
Some important items to know to finance your are:
- How much money do you really need?
- Do you know your exact FICO scores?
- How do you plan to repay the loan?
- Who is going to borrow the money? You personally or another legal entity?
- What assets can you pledge to secure your loan?
Make sure you know you are pre-qualified before you apply. Our free business capital search engine will allow you to see the funding programs and lenders that are available to you and then you choose those you wish to apply for.