We would like to purchase a used track loader for our business. We have been in business almost 2 years. The business is profitable. FICO score is about 750.

We have enough to buy the equipment but do not want to restrict cash flow too much as we want to purchase property soon. Currently we spend $200 - $800 per month on renting a machine like this. We would like a loan for $8000 - $10,000. We would like a payment of about $300 per month.

Retail price of Track Loader: $16,500
It is a 1999 Takeuchi TL26

Any advice on how or who we would seek financing from for a purchase like this?

Thank you for your help...

I have never done this type of financing. However, I have been underwritten a couple of used truck / heavy equipment dealers for lines of credit. From what I have seen in their books, the rate of interest charged for this type of financing is really high. I am talking 16% to 19% in most cases. As such, you should try to avoid it if possible.

If I were in your position, I would try to get this from my bank in the form of equipment financing, you can save a lot by doing it like that. The problem would be to get a lender interested. Hopefully, the one that has your business checking account can do it for you.

It will help the process if you can:

- Provide business/personal tax returns and financials.
- Give some information about the vehicle {including an estimate of value}

Good luck

Look into lender in your area:

http://www.sba.gov/gopher/Local-Informatio...r-Participants/

Also look into equipment leasing companies such as US Bank or GE Equipment finance. Puget Sound Leasing is another option.

Here is an industry web site for equipment leasing:

www.elaonline.com/