Buy Off Lease Commercial Equipment With No Credit Check - Bad Credit Heavy Equipment Financing

This is a good time to buy off lease commercial equipment such as dump truck, bulldozer, tractor, excavator, backhoe loader etc for your construction company. While many small companies are struggling and workers are getting laid off, this is a good chance to buy new business equipment with no credit check if you have plans to expand your operations or replace the old commercial equipment you are still using. There are now a surplus of off lease heavy equipment in good condition that can bought at dirt cheap prices, which makes more sense to save money on your equipment investment compared to brand new excavators or bulldozers. This is especially true for new businesses with no established credit and you are not able to use personal guarantee for financing new commercial equipment because your credit score is bad.

Nowadays, there are two separate types of off lease heavy construction equipment for sale. Firstly, there are the bank or lender owned repossessed off-lease dump trucks and tractors. These are taken in before the end of their original lease term because the users cannot continue to pay the monthly lease. Many banks and commercial lease financing companies have a problem with too much repo commercial equipment on their inventory and is willing to negotiate on the selling prices for interested buyers. Most of these bank repo commercial trucks and machinery are in good condition and value for money, especially for new business with no credit.

However, you may not necessarily be able to get bad credit commercial equipment financing for new companies. Some banks will require you to pay in cash first, although you can turn around and use these good condition heavy equipment as collateral for a commercial loan later on. If you can get a loan to buy repo off lease bulldozers and excavators etc, the requirement is usually more down payment.

The second type of off lease equipment are those that have been returned to the lease finance company upon expiry of these lease term. These are usually used for 3 to 5 years, and are not like brand new equipment. The banks and lenders are more willing to offer bad credit heavy equipment financing for anyone so that they can get rid of these old stocks. When you are a new business owner with less than one year of operations, you may not meet the business financing requirements for new excavators or dump trucks. In this case, choosing to buy these off lease equipment with no credit check financing may be the only and cheaper solution.

When your personal FICO credit score is lower than 580, and trying to start up a new heavy equipment company, it is not easy to get financing to buy equipment unless you approach those hard money lender with expensive rates and fees. You need to slowly build up your business credit, have over a year of business bank statements and tax statements etc, before the banks will process your application for a commercial loan.

Alternatively, you can start right now by choosing off lease equipment from a lender is willing to accept new businesses without a credit check. That will be easier to buy and finance new equipment without credit check. Many entrepreneurs have faced difficulties in getting funding to buy equipment because of poor credit, bankruptcy, low capital, etc. That is why we recommend you to buy off lease commercial equipment with bad credit and no money down from the lenders and equipment lease financing companies with repossessed stocks.

This is a good time since lenders with surplus repo commercial equipment are in a hurry to unload these to minimize their holding costs and cut their losses. You can benefit from their easy no credit check commercial equipment loan requirements even for businesses with bad credit. You may not find the lenders willing to extend new equipment loan credit to you once this opportunity is lost.