Snowplowing is a C$6 Billion a year industry in Canada. So, yes, a snow plow is a source of extra income. But they are not cheap and purchasing one can be a challenge if you don’t know how to do it right. In this article we’ll explain how to finance a snowplow, what to look out for and, most importantly, how to do it without blowing your cash flow.
Purchasing a snowplow
You know better than we do the advantages of buying and owning a snow plow right away. The drawbacks start if the price of a snow plow impacts your cash flow, jeopardizing your business in the short term. Or it may be the case that you don’t have enough money to buy a snowplow, which is absolutely normal.
Financing a snowplow: how leasing fuels your business growth
Financing is the solution to the drawbacks of purchasing a snowplow outright. The most common financing options are loans and leasing. For many business managers like yours, leasing seems to be the smartest option. Why? Here are their favourite reasons:
- you don’t have to deal with loan interest rates. The leasing agreement establishes a fixed number of fixed payments, a huge benefit to your company’s day-to-day financial planning.
- There is no collateral need since the equipment leased serves as collateral.
- Lease payments are 100% tax-deductible, providing a huge fiscal advantage while helping your business’s cash flow.
- Leasing doesn’t affect your ability to borrow.
Still unsure if leasing is the best solution to get a snowplow? That’s normal, after all you want the best for your business growth, and you want to make a smart move. Contact us today, and we will answer all the questions you may have!
Who qualifies for snowplow financing?
We can’t speak for other financial institutions, but we can tell you that Finco has worked with a broad range of businesses that, like yours, need one, or several, snow plows. For example, companies that are professionally engaged in clearing roads and railways, or other public or private spaces, such as parking lots. Also, to enterprises that need to clear their construction work sites, airports, loading docks, etc. In fact, that is our expertise: business equipment financing.
In conclusion, if you have a business, and you need snowplows, the answer is yes, you can apply for snow plow financing at Finco. From there, we will customize with you the best financing solution for your business.
How to apply for snow plowing financing and leasing?
- Identify the equipment you need. They can be new or used snowplows. It usually helps to have several options in mind, with different features and price ranges.
- Have documentation available to prove your liquidity and credit score health.
- Think about how long you would like to have the leasing agreement. The longer the time frame, the more likely it is that your monthly payments will be smaller.
- Shop around. Consider different financial institutions and the leasing options they offer. Choose one that, like Finco, is specialized in snowplow financing: they will better understand your needs and will be able to customize leasing solutions to your specific needs.
- Get ready to use your snow plow and grow your business. Leasing will allow you to make a smart investment, with an optimized ROI.
For the vast majority of businesses, the purchase of snowplows can be a short-term risk to the company’s cash flow. The solution to this problem is to finance the purchase.
The two most common forms of snowplow financing are lending and leasing. As seen above, leasing is, according to many business owners who buy snowplows, the smarter, more effective option and the one that provides the best economic and financial return for their company.
Also, the financing procedures can be complex. If you are evaluating leasing, compare different finance companies. We advise you to choose one that, like Finco, specializes in snow plow financing and offers an easy and straightforward application process. If you have any questions, don’t hesitate to contact us today.