We always like staying on top of the latest news for the industries we work with, so we were happy to receive the August issue of Pumper magazine (the Midwest edition) which focuses on the liquid waste industry and the various equipment types the industry employs – you can find their website here. There are so many exciting developments and opportunities on the horizon that we know will play huge roles in your business. Growing trends like alternative-fuel work trucks can save you money over time by way of reducing the gasoline consumption of your fleet (page 50 “Clean Fleet Partnership Saves Fuel Costs” – here’s a breakdown of the pros and cons of each fleet energy type).
Technology is also playing a bigger role, as the wastewater industry continues to adapt to changing environmental regulations using new equipment types, and implementing automation to both residential and commercial systems (page 68 “The Future is Tied to Technology and Automation” – check out The Advantages of Automating Wastewater Treatment here).
Of course, the other foundational parts of a waste management fleet need to be in good condition to keep business running as the industry continues to progress. New pump trucks are getting developed all the time. Here are a few vendors that should give you a well-rounded picture of what’s out there:
So, if you’re looking to acquire new equipment, that’s great! Just make sure to plan accordingly. If you pay with cash, that could leave you without capital for other business needs. Sometimes, your best option is to finance your equipment, to allow for manageable monthly payments that keep your cash flow free. With equipment financing, you can make upgrading your equipment easier than ever, but you need to find someone who knows what they’re doing… and we’re here to help you know what to look for in a good funding source.
Your local bank is usually a good choice, however, given that they may not be familiar with liquid waste equipment, this may not be the path of least resistance. So ~ as you begin your search (under most normal circumstances) you should do the following things to determine if you are working with a quality equipment leasing / financing professional – see below:
Upfront Monies: If they ask for money upfront ~ you’re up the wrong money tree! Once you are APPROVED & receive documentation, then & only then should you send the lender any needed down payment or advance payment along with your signing of a credit-approved final contract.
Furthermore, check for the following ~
Reputation: That the commercial lender has a great reputation. But, how do you know? Easy enough ~ Google the company name and the city and state. You are just looking for complaints. Be careful if you see many (more than a couple) of these! If so, choose another.
Longevity: Has this company been around for 10 or 20 years or more? A seasoned organization, with no complaints is often a great way to go.
The Contract: Review the contract and verify that these are the final terms & that you are indeed credit approved. Verify too that they are ready to fund once you send in the final contract. If this is not the case … you’re better off with someone else.
Once you find a credible lender it is time for underwriting.
Get a financing or equipment leasing quote and complete a credit application.
Many well-established lenders offer an online application ~ like this:
Online Application: Click Here
Terms and Payments for liquid waste equipment can vary based on the amount of money involved and your overall credit profile.
Also ~ whether the equipment is new or used can sometimes impact the terms available for borrowers.
Many National Commercial Lenders offer A, B and C Options and thus the differences. Financing terms are typically from 2 – 5 years. Here are some factors that aid them in underwriting a company’s credit application:
Time in business: The newer the company the greater the monthly payment.
Personal Credit Score: The lower the credit score the greater the monthly payment ~ all things being equal.
Many other factors help a lender to analyze the risk associated with a professional applicant.
Usually the 5 C’s of Credit come into play when a lender analyzes an applicant.
Character / Credit: Personal and business credit scores and the like help the lender understand this C as it relates to an applicant.
Capacity: Show me the money! Capacity to pay is all about cash flow. Many liquid waste equipment lenders ask for a copy of 3 recent bank statements. These are easy to obtain & forward thanks to online banking. This shows how much you are making & spending in each of the months presented.
Collateral: What is the equipment worth now and what will it be worth in the future. This helps to show a creditor the value of the collateral.
Conditions: What are the conditions of the industry and the economy as a whole?
Capital: How much money or wealth do you have in your company?
Sound complicated? It doesn’t have to be! We have over 30 years of experience at SLS Financial Services helping people just like you finance new and used equipment so that you can focus on growing your business. If you’re ready to add the benefits of new equipment to your ever-growing business, we’re ready to help you make the process… Uncomplicated! We aren’t your typical commercial lender. We look at the person behind the application. If you have any questions about our process feel free to reach out to us at 816-587-3400 or you can find a link to our application below.
Today, credit scoring systems can make credit decisions almost instantly. However, business is still about people. More than ever, business-owners seek a commercial lending partner to learn about their unique needs and be solution-providers.
Speed and technology are important, but do they come at the expense of leaving people, their story, and opportunities behind?
At SLS, we’ve never lost focus on the business-owner behind the application. A big part of our success is based on customer satisfaction ~ plain & simple, because we believe in leveraging technology and combining it with our expertise for only one purpose…to help people.
Call Doug for more information ~ 816.863.3070
President of SLS Financial, an accountant, former Board Member of one of the safest banks in America, and owner of multiple businesses.
For more than 30 years he has assisted buyers and sellers of equipment with competitive finance and commercial lending programs.