Forklift Finance: Essential Facts You Must Know About It

As the name implies, forklift finance is the kind of business finance that one uses to buy heavy industrial equipment like a forklift for daily operational execution. Companies that need heavy lifting in their day-to-day work, like warehouses, dockyards, construction, recycling plants, etc., can benefit from forklift finance. Buying or leasing heavy industrial equipment requires significant capital, which can be difficult for a small business. That’s where forklift business financing comes to the aid of the business owner.

Defining Features of Forklift Finance

Forklift finance has the following salient attributes.

• There is no need for a down payment. You can borrow up to 100%
• It is applicable for both used and new forklifts.
• You do not necessarily require to provide a collateral as the underlying asset works as a security for the lender.
• Since it is tax deductible, you can earn significant tax benefits.

Whether you are a sole trader or own an enterprise, you can benefit from forklift finance.

Benefits of Forklift Finance for Businesses

Now, let’s talk about the benefits of forklift finance for a business.

• It is cost-effective and a more rational way to finance an important company asset without impacting the capital reserves. These have flexible payment options, so if you are short of capital or funds, you can source your equipment easily.
• When you apply for forklift finance and start paying the monthly repayment amount it improves your credit score, using which you can apply for future business loans.
• With a functional forklift at your disposal, you can increase the productivity of your enterprise and earn more revenue.
• Buying heavy machinery like forklifts is counted as a balance sheet asset and not a liability for the company. It acts as proof that the company is doing well.

Forklift Financing Options

Let’s understand the different options for forklift finance.   

Fully Maintained Rental

Fully maintained rental is beneficial because it is affordable and streamlines the maintenance cost of the equipment. You can lease the forklift for 12 months to 7 years and pay monthly rental charges. Fully maintained rental finance covers regular maintenance, along with breakdown and spare part assistance. The best part is that you can own the equipment without having to think about the maintenance and repair expenses.

Chattel Mortgage

In this case, you get immediate ownership of the forklift as soon as you buy it using the loan amount. The lender will treat the forklift as security or collateral or access it via chattel. Once you repay the loan and interest, the lender will release the chattel from the equipment.

Conclusion

If you are searching for a lender for forklift finance, our recommendation is to look for a reliable professional or a finance broker like Broc Finance. Partnering with professionals will spare you from searching and negotiating with a private lender on your own. An experienced broker will do a better job, and you will have a higher chance of getting approval with a poor credit score or minimal trading history. Reach out to the experts at Broc Finance today!