Equipment financing rates

timberlinetree · March 21, 2013, 07:19:08 AM

I have some of the money, but will have to borrow approximately $10000 for a used forwarder. I have excellent credit and got quoted for a rate of between 10% and 12%, which I thought was kind of high. The last time we bought a piece of equipment from New Holland, we got 0% financing. So I'm not sure what a good rate really is and if I should try my bank or other types of lenders. Any suggestions? Thanks!

scottmtfarm · March 21, 2013, 07:56:27 AM

My experience with intrest rates is to shop around. I have used Carolina Farm Credit for most of my equiepment financing and have had them to drop a percent or 2 just buy asking. The wife bought a preowned car from a ford dealer last year and they wanted to finance it but quoted me a higher itnerest rate than I could get at CFC. When I told the dealer I was going to use CFC they dropped the interest 4 percent on the spot. 10 to 12 percent seems high to me. I bought a used flatbed F450 farm truck last spring and finacned 10000 dollars for 5 percent.

Ed_K · March 21, 2013, 08:15:42 AM

10k from my banker on a 2yr was 6.25% but they required my other equipment as colateral.

mark686 · March 21, 2013, 08:19:59 AM

I am working with a business funding company and they claim they can get me between 3.5 and 7.5 percent on my loans. the bad part is they needed money up front for there work they are not the actual lending institution.

CTL logger · March 21, 2013, 08:41:50 AM

Just borrowed the money for my timberpro forwarder 5,25% rate. That's from my local bank.

beenthere · March 21, 2013, 10:17:54 AM

Quote from: mark686 on March 21, 2013, 08:19:59 AM
I am working with a business funding company and they claim they can get me between 3.5 and 7.5 percent on my loans. the bad part is they needed money up front for there work they are not the actual lending institution.

Sounds mighty suspicious to me. Claims, and needing money up front seem to be warning signals.
But you know more about what is going on, than I. Just be careful about what's up, or prepared to see your money walk off.

Ken · March 21, 2013, 05:22:39 PM

When I was shopping 2 years ago my long term financial institution were seriously dragging their heals on approval. I took all my information to another institution and had an offer within a day. Went back to my first choice armed with that information and got all I wanted. My loans run from 4.5 - 6%.

SwampDonkey · March 21, 2013, 05:32:43 PM

Don't pay 10-12%, they don't seem to need business if they want that much. Heck an unsecured line of credit is prime plus 2.25%, which is 5.25% in plain English for up to $50,000

cutter88 · March 21, 2013, 06:10:25 PM

borrowed 20000 last year it was @ 8% from national leasing and financing... they said the could have did 5.25 if it was less then 5 yearsd old.... the older the machine u buy the more they want for intrest was how it was explained to me.....