Choosing A Better LenderChoosing A Better Lender

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Choosing A Better Lender

A few months ago, I realized that I simply couldn't borrow money from my parents anymore. In addition to tapping the resource dry, they were also starting to look a little uncomfortable anytime I was around--even if I wasn't asking for cash. I realized that my financial problems were my own, and that I shouldn't rely on my parents to keep bailing me out. To fix my finances once and for all, I decided to look into choosing a better lender. I found a great bank in town that felt comfortable lending me the money, and they were nice to work with. This blog is all about knowing what to ask and how to choose a lender.


How Should You Finance A Long-Term Equipment Rental?

Whether you're planning to construct your own home from the ground up or are doing some major landscaping this spring, you may be considering the rental of a backhoe, skid steer, cement truck, or other piece of heavy equipment until your project is complete. With a number of equipment rental companies flourishing throughout the U.S., you shouldn't have much of a problem finding an available piece of equipment -- however, choosing how to pay for this rental can present a dilemma. Read on to learn more about some of the financing options at your disposal.

What equipment financing options are available?

In many cases, you may be able to finance your rental costs directly with the equipment provider, by paying a deposit and then a weekly or monthly fee until the equipment is returned in good condition. Your deposit amount may be refunded at the end of the rental period, and those with good credit may be able to enjoy a lower deposit amount or even have this fee waived. This option is best for those with a regular income who can afford the payments and who have a set building schedule designed to avoid delays.

The equipment rental company may also provide interest-free financing for a longer period of time, with the payment of a lump sum due at the end of the rental period. Failure to pay this lump sum when you return the equipment could subject you to higher interest rates, so it's important to set aside this money as quickly as you can to avoid extra charges. To help prevent these charges, consider investing in equipment financing consulting

If you're not able to pay these costs at the time they accrue but own your own home and have built up a bit of equity, you should be able to take out a home equity loan or line of credit to cover the rental fees. Although this process can take a month or more and require nearly as extensive a level of documentation as a mortgage or refinance, an equity loan or credit line can provide you flexibility when it comes to minimum payments and any interest you pay may be tax-deductible.

Are there any other ways to fund this type of rental?

Those without the equity for a home equity loan or the cash flow for direct financing may want to investigate credit card balance transfers or interest-free offers. If your credit score is fair or better, you may qualify for a balance transfer or other offer that will allow you to make minimal payments on this debt without paying interest. At the end of the offer period, you may be able to transfer this balance to a different card (often paying a small percentage of the total transferred in interest) or pay the card off in full.