Four Important Equipment Financing Questions to Ask in 2020

It’s a new year, and a new decade.  We begin 2020 with a strong economy, and that means good things moving forward.  If you’ve contemplated financing new equipment for the new decade, here are some good questions to ask.

#4) HOW DOES THE ECONOMY LOOK?

The tail end of 2019 saw a lot of Canadians showing anxiety over the state of the economy and potential job growth, but this may be unfounded going into 2020, where the Canadian economy is expected to grow.  It might be the right time to strike while the iron is hot.  Banks and lenders pay close attention to the economy to make equipment finance deals more attractive.  Expect a little turbulence between February to April of 2020 until more official economic stats pour in, but so far the outlook is primed for you to take advantage of equipment financing to grow your business over the next several years.

#3) HOW WILL TECHNOLOGY AFFECT EQUIPMENT FINANCING?

Technology continues to evolve at an accelerated rate, and that directly affects equipment.  As we enter the new decade, it’s worth taking the time to do an in-depth analysis of the equipment you want to buy, and see if new technological features make it worth financing new as opposed to used items.  For instance, the construction site has now been infused with Telematics, Integrated Grade Control Systems and Drone Technology that has changed the face of construction equipment, and that’s just for starters.  These technologies will continue to evolve over the next decade, so upgrading your existing equipment to a more efficient model may be exactly the right kind of move for your company. 

#2) HOW EXPERIENCED IS MY FINANCING COMPANY?

This is as important a question today as it will be throughout the next decade.  You want to be sure you’re working with a financing company that has the experience necessary to facilitate the best deals, offer the best interest rates, and find the best equipment on the market.  This even goes for financing used equipment.  Many companies consider only the initial financing deal, but they fail to contemplate the advantages of a long-term relationship with a reputable financing company. Ask the important questions in the first meeting, regardless of how many there are.  Ask the financing company to showcase their past success so they can prove they’re the right fit for you.  Don’t be lured simply by prices and interest rates.  You deserve those right from the start, along with great service! 

#1) AM I READY?

Naturally, this will all boil down to whether your company is ready to replace or upgrade older or inefficient equipment, or acquire additional equipment to take on new business.  If so, there’s no reason to hesitate in financing new equipment.  A good financing company will work hand in hand with you in order to answer your questions, analyze your current financials and set you up with the right equipment for the right prices, terms and interest rates.  There are plenty of options for those who are just starting out, or whose personal or business credit is not quite as stellar as they’d like it to be.  The 2020s will bring about a lot of change across a multitude of industries, and those looking for new transportation, construction, manufacturing, forestry, agriculture or industrial equipment will be at the forefront of these changes.  Technological innovation is already making huge strides in all of these industries, and there’s no sign of that slowing down.  The equipment is ready.  The question is, are you ready for the equipment?  If so, there’s no reason to hold back!

We’re excited to see what the next decade will bring for all of these major industries.  If you feel you’re ready to finance new equipment, we encourage you to get in touch with us today so that we can use our financing and diverse equipment expertise to help prepare you for the 2020s!