What do vacuum and pumper trucks, water blasters, portable restrooms, excavators and skid steers have in common? They are all equipment used in the liquid waste and wastewater industry.
If you own a company that specializes in the installation and maintenance of sewer and septic systems, rent and service of portable restrooms, and/or provide industrial vacuum and cleaning services, you operate in a unique and critical industry – one that can be difficult to understand if you aren’t familiar with the services provided and equipment used. When it comes to purchasing and financing this equipment, finding a lender that has in-depth equipment and industry knowledge can be challenging.
Why Does a Knowledgeable Lender Matter?
There are a lot of financial companies willing to loan money for equipment purchases. Some are more selective than others regarding the types of equipment they’ll finance, often because they simply don’t understand a specific industry or equipment type, or they compensate for the lack of industry knowledge by requiring large down payments or unrealistic terms. But wouldn’t it make more sense to obtain financing from a company that has a proven track record financing liquid waste equipment and intimately knows the nuances of the liquid waste and wastewater industry?
Speed is often critical to getting the equipment you need and getting it into service. An understanding of the equipment, the business and the industry can help a lender make fast credit decisions. If the underwriters are knowledgeable and can quickly assess equipment value, they can render credit decisions and get you funded faster. A lender that is not familiar with the equipment may take longer to render a credit decision, require less favorable terms, or may even turn you down.
Not all businesses are created equal. Financial ratios and industry norms vary by industry and segment. Factors, such as seasonality, or geographic regions impact some industries more than others. A familiarity with these types of nuances can often assist in evaluating credit and result in a quick approval.
A lender with industry expertise can be used as more than merely a lender. They can help you assess your business situation and can bring unique insight and suggestions that can help your business grow.
Most equipment lenders only provide loans to purchase new equipment. Equipment refinancing, working capital and debt consolidation loans are useful tools to navigate business cycles and capitalize on opportunities. Commercial Credit Group can actually refinance existing equipment so you can obtain working capital to help fund business operations. Furthermore, while CCG has long-standing expertise in the liquid waste industry, we also finance equipment for construction companies. So septic installation companies that need to finance pumping trucks and skids steers or excavators, can do all their financing in one place.
Financing vs. Paying Cash
Some companies tell us they don’t need financing because they always pay cash for their purchases and equipment acquisitions. But depending on your needs financing can be advantageous to your business.
Save Cash for the Future
Even if you have cash-on-hand to pay for equipment, financing the purchase conserves or saves the cash for future opportunities or challenges. If all your cash is tied up in your equipment, it can be more difficult to access if you have a situation in which you need ready cash. These situations can include opportunities for new business, downtime or maintenance issues, natural disasters, or other emergencies.
Build Business Credit
Financing builds business credit. Even if you try to operate your business debt-free, there may come a time when you need to borrow money for larger purchases – property acquisition or route expansion, for example. In those cases, you have no choice but to borrow. If you’ve financed before, you’ve built a credit track record which will make the process much easier.
Consistent Cash Flow
Paying cash for equipment causes great swings in your business cash flow. Financing provides for consistent payments over time, which stabilizes cash flow and makes it easier to budget for the short-term and long-term.
Get Started Financing Your Next Liquid Waste Equipment Purchase
When you are ready to finance your next machine, whether it be a septic pumper truck, vacuum truck, or excavator, these are the steps you need to take:
- Complete a credit application
- Provide the requested financial paperwork – tax returns, financial statements, etc.
- Provide the purchase paperwork – equipment invoice, insurance information
Depending on your situation, your lender may ask for additional data, but the key to a speedy turn-around is to be prompt in fulfilling any requests. Once the lender has all the information, the underwriter will review it, render a credit decision and once approved, you’ll have paperwork to sign. After the agreement is signed, the seller will receive the funds and release the equipment to you so you can put it into service and start making money with it.
Want to know more about Commercial Credit Group’s liquid waste financing programs? Visit our liquid waste financing page, see us at the WWETT Show (Water & Wastewater Equipment, Treatment & Transport), or apply for financing.