Get pre-qualified before you apply for a heavy construction loan. 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.
A heavy construction loan is a special purpose loan designed to provide funding for the purchase of heavy construction material and equipment. A heavy construction loan helps a business that is need of heavy construction-related equipment have access to financing.
Heavy Construction Purchase
Heavy construction-related materials are considered capital equipment that is purchased by a business such as a construction company. Capital equipment is held on the books of a business and depreciated over time. This is done in order for the business to recoup the costs associated with owning capital equipment that depreciates or goes down in value over time. At the end of the useable life of the equipment, the business simply writes-off the cost of the loan and arranges a new heavy construction loan as a replacement.
Heavy construction loans are long-term loans. They are based on the useable life of the equipment. Over time as the heavy construction equipment, materials and supplies are used more and more, it loses value. Depreciating the loan’s cost over a period of 15 to 25-years helps the business take advantage of the financing provided through a crane loan and benefit from the write-off.
Heavy Construction Interest Rates
The loan rates associated with a heavy construction loan varies and is going to depend on the borrower’s credit, security or collateral requirements and the use of a co-signer or guarantor. Each of these helps a borrower with poor credit qualify for a heavy construction loan and acquire the needed piece of equipment.
Credit is the lifeblood of your business, especially for small or new startup companies. BusinessFinance.com assists entrepreneurs to get started purchasing equipment, building your inventory and expanding your business.
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?