An investment in forklift trucks is a wise logistics decision. They are undeniably helpful in business processes because they can unload, lift, and move heavy goods. However, forklift materials are often expensive. Particularly if you need multiple units, and are looking for new forklifts for sale, it may be wise to consider the many ways to finance your forklift.
Here are some of the most popular methods to finance Lithium-Ion forklifts.
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Ways to finance new forklifts for sale
Buy Your Forklift
The most obvious way to get a new forklift for sale is to buy one outright. This means paying for the entire cost of the lift truck upfront. If you have enough savings to pay for it immediately, this is a great way to go because it puts no debt on your shoulders and gives you complete control over how much money you spend on equipment.
Rent A Forklift
Many businesses rent forklifts instead of buying them because they can’t afford to purchase the equipment they need or want to try out different models before permanently committing to one type of lift truck. Renting allows companies to spread out their purchases over time and gives them more flexibility with their budgets and space requirements at work sites. However, renting also has drawbacks:
- You’ll only be able to use the equipment during the time specified by your lease agreement.
- There’s no guarantee that another company won’t have exactly what you need when yours expires.
- If something happens to damage or destroy your rental lift truck before its time is up, you could end up paying for it anyway.
With forklift financing, you don’t have to pay an entire amount at once when you purchase forklifts. You can use a loan or lease to buy a forklift truck for your business. Forklift leasing is finance for a physical asset. Compared to borrowing money, financing forklifts tends to be more affordable and less risky.
Most manufacturers offer factory-direct financing options that include competitive rates and flexible terms. These deals are often available through your local dealer or the manufacturer’s website.
Dealerships often offer special discounts on their websites when you finance through them. Some dealers even offer warranty extensions when you finance through them as well.
Here are some benefits of forklift financing:
It keeps your business up-to-date. As technology changes, so does your equipment. If you want to keep up with the latest trends in your industry, you need to invest in new equipment every few years or so.
It is also a positive factor on your balance sheet. When you take out a loan from an equipment finance company (or any other kind of lender), it shows up as an expense on your balance sheet — which is another way of saying you do not have a debt. Investors may be more interested in a business with a debt-free balance sheet.
Even if you don’t have the money to buy a new forklift outright, there are still plenty of ways to finance the cost. You simply have to know your choices and which ones are best for you. The three financing options covered above should give you plenty of options to consider. Just remember that with any financing, caveats are involved, so be sure to be aware of these things before making a final purchase decision.