Have you ever tried to get Equipment Financing for your Heavy Equipment at a bank? If you have, you will relate to this article.
Last year I had to purchase a new combine for my farm and I just happened to be in my bank doing a deposit and I mentioned that I was on my way to the John Deere dealer to shop for a new combine. The teller I was dealing with, who was doing her job, suggested I speak with one of their representatives so the financing could be set up for the purchase. Since I had a bit of time on my hands, I decided to see what they had to say.
Let me say at this point, I have grown accustomed to dealing with a particular Alternative Lender for my Equipment Financing but I thought why not see what they can offer me.
To make a long story short, I met with the banker and he told me all about how the bank can offer. Once the niceties had concluded the bank proceeded to advise me of all the information they would need to have me supply they with which were the tax returns for the last 3 years, audited financial statements for the last 5 years, they wanted my wife to come in to fill out an application as well because they would need a joint personal guarantee from both of us and once they had that, they would be able to review the application to see if we could get approved. The review process was expected to take about 4 weeks once all information would be provided to them.
At that moment, I thanked the banker for his time and excused myself from his office.
Generally speaking, when you are dealing with an Alternative Commercial Lender, they will want the application completed, bank statements for the last couple of years and sometimes confirmation that our taxes are paid to the current date.
Processing time with the Equipment Finance Company I use is normally within 48 hours of submitting the application, we always have a response.
Despite from the fact that the Alternative Commercial Funder is so much quicker, the fact that they only have a lien on the equipment I purchase, not everything our family owns is a lot more comforting than the bank who wants to have everything we have as collateral as well as personal guarantees from both my wife and I.
If you have had similar experiences or any comments, it would be great to hear from you!