Paving and Landscaping Company Needs New Lender When Bank Exits Equipment Financing
Spend less time budgeting and more time working with a debt consolidation loan.
Reluctant to buy new equipment because of existing debt load? We get that. It’s not good business to overextend yourself. But sometimes it’s possible to improve cash flow, consolidate existing debt, combine it with a new purchase, and still reduce monthly payments. Benefits of consolidating debt include:
Debt consolidation is the process of replacing multiple loans with one single loan. This reduces the number of creditors you are paying by consolidating your debts into one payment through a single lender. Oftentimes companies are overleveraged with different sources of debt, and consolidation can help with debt management and potentially reduce monthly payments and improve cash flow. When consolidating debt with one lender, that lender may give the option to extend the term on a loan, thereby reducing the total monthly payment. Paying less each month can increase cash flow and allow more flexibility with seasonality or opportunities for business expansion.
If debt consolidation sounds like the right decision, it is important to work with a lender that understands the industry you are in and the equipment you own or want to purchase. Your point of contact at a bank, for example, may not understand the market value of your equipment. They may only take the book value into consideration, without considering the accumulated equity. Nor will they have the flexibility to work with you during times of business disruption.
CCG can help because we understand equipment, and we understand equipment financing. We know what to look for when evaluating equipment and the financial circumstances of our customers. We’re used to helping companies obtain the equipment and financing that fit their needs and help grow their businesses.
