Earthmoving Equipment

Many kinds of earthmoving equipment can be financed, including excavators, backhoe loaders, bulldozers, dump trucks and other types of earthmoving machinery.

The most common methods used in earthmoving equipment finance are asset lease, commercial hire purchase and chattel mortgage. The professionals at Platinum Direct Finance can assist you in determining which approach is perfect for you.

Under an asset lease, the lender buys the earthmoving equipment and enters into an agreement in which the customer leases the equipment, paying a fixed amount of money each month for the right to use it in his business. At the conclusion of the contract, the customer has multiple options available to him. He can take ownership of the equipment, free and clear, by paying a residual on the lease, re-finance and extend the lease or sell the equipment. One of the main advantages this option offers is the fact that the equipment is not listed on the customer's accounting books as an asset and therefore a potential liability.

With a commercial hire purchase, the lender buys the earthmover, then hires it back to the customer for a length of time they both agree on. This technique lets the customer have full use of the earthmoving machinery throug the length of the contract, even though he does not own the equipment outright. At the end of the contract, the customer does have the option of taking ownership of the earthmoving machinery if he has paid the full price and any interest that has accrued.

The terms of a chattel mortgage require the lender to advance money to the customer to buy the earthmover. After doing so, the lender places a mortgage on the equipment, called chattel in legal terminology, as security. The customer is awarded the title on the equipment once he pays off the mortgage. The customer can make a cash deposit or trade in old equipment to initiate the agreement.

The terms of your financing can vary depending on several considerations, including the type of earthmoving equipment that is being financed, whether it is new or used, and the kind of jobs you are doing with the heavy-duty machinery. This is accurate no matter which financing product you choose. Flexible terms are often available to cover the entire length of your contract.

Get started on securing your earthmoving equipment finance today by contacting the team of loan professionals at Platinum Direct Finance.