Transport Topics Online
The Newspaper of Trucking and Freight Transportation
Welcome  Guest  Log In         
1/7/2013 8:00:00 AM Write a Letter to the Editor Write a letter to the Editor

Opinion: Timing Your Equipment Financing

By William Sutton

President and CEO

Equipment Leasing and Finance Association

This Opinion piece appears in the Jan. 7 print edition of Transport Topics. Click here to subscribe today.

Given today’s growing equipment demand and ongoing economic uncertainty, many businesses are finding noncash equipment financing to be a key acquisition strategy. The current market shows equipment financing — whether by lease, loan or line of credit — to be as vital and available as ever, enabling businesses to secure the assets they need while achieving their operational and financial objectives.

If you’ve made the decision to go the noncash route, the next consideration is timing, particularly now that the old year is winding down and the new year is upon us. Indeed, end-of-the-year incentives typically offered to trucking businesses by lenders and captive vendors put so much emphasis on leasing for noncash acquisitions at this time of year that it automatically feels like the right thing to do.

While such deals are often available at year-end, it’s important to keep financing in mind for acquiring the equipment your business needs, regardless of the time of year. A variety of available options, from commercial banks to smaller, more specialized commercial finance companies, can be found. The important thing is to determine your company’s needs and then choose whichever means of financing those acquisitions will be the most accommodating — and in the best timeframe — for your operation.

Of course, one reason leasing and finance companies typically do push to close transactions in December is to take advantage of any tax benefits during that particular fiscal year. Because of this predictable phenomenon, the Equipment Leasing and Finance Association’s monthly Leasing and Finance Index for December typically shows new business volume booming that month. When tax benefits for equipment leasing and finance companies exist, there should be an added incentive for them to offer better deals to customers.

2 3 Next >>



Follow Transport Topics on Subscribe to get up to the minute news briefs and more from our feeds. RSS Twitter Twitter Facebook Facebook

© 2013, Transport Topics Publishing Group. All rights reserved.


  RELATED ARTICLES

 
LATEST NEWS



 
LATEST JOBS
Follow Us

Newsletters

TTExpress
This free daily newsletter delivers the latest headlines.

TT Executive Suite
This subscriber-only newsletter program tailors your news.

Services

Advertising




© American Trucking Associations, Inc., All Rights Reserved TTNews.com Privacy Statement