The fact is quite known that it is difficult to get funding for used equipment from outside. The reason behind this is pretty much obvious that since the equipment is a used one which has got no residual value, it will not have backers. If the bank agrees to equipment financing, the terms and conditions will be strict and stringent. The bank or lender will assess the value of the asset before agreeing to finance it.
The buyers of used machinery can be small businesses who are not capable of arranging expensive or costly systems for running the business. Similarly, the sellers and manufacturers require cash flow and liquidity to run business operation, to boost the capital budget. When you talk about the market of used machines, it functions as a decentralized market. The best part of buying used machinery is that there is a bright chance of your landing an attractive deal. You may look up for the deal and find a slightly better deal. But, the drawback is that most of the times it is not possible to procure such a good deal as the market is a global market. Despite the internet and the facilities, it offers, you will have to look for an experienced and knowledgeable person to help you find the technical value of the equipment. Anyone knowing the local market can pretty well help you to set the value of the used machine.
There is myriad of options for equipment financing
If you are willing to finance equipment, there are a myriad of options available for you. Equipment financing companies are there to help out the buyers. Some companies are good while others are not. It is you who has to make the choice and finalize a suitable company. As financing used equipment is not as easy as financing new equipment, companies do have their strict terms and conditions. Most of the times, they do not agree to finance used the equipment. So, your first task would be to find, if the chosen company offers finances for used equipment or not. Even if the company cannot finance used equipment, you must try and establish relationship since it can give you the names of such companies who finance used ones.
Do not go for the company which overly restricts financing
Some of the financing companies impose huge restrictions on the service seekers. For instance, there may be age limitation and even the term may be limited to just 36 months. The company must work for your benefit rather than imposing the term restrictions or be choosing arbitrary age.
Go for established traders having presence in the European market
It is a great idea to check the services offered by established and large traders having the presence in the European market. The company must work in several segments like food and beverage, packaging and plastics, etc. It must have business relationships with banks and financial institutions. Make sure the financial option is tailored to fit your needs. Besides, if you are a buyer, there should be multiple options available for you like outright purchasing, hire purchase and leasing, equipment renting and contract facility. Among the options, you can choose the one which suits your present condition.
Used machinery broker
When it comes to funding, the options are many. An experienced broker for used machinery can get good financial terms if the value of the machine is high. Thus, the monthly instalment will be lower and even the risk for the lender will get diminished. Choose a company which does not make use of third-party appraisals. Both the buyer and the seller may get disappointed if everything moves as per the rules set by 150k. The company which is there to support the seller and the buyer must be chosen. Be aware of the company who offers warranty over the equipment.