In an environment where costs are skyrocketing everywhere, one way to decrease your monthly expenses is by stretching out the term length of your equipment financing. Unfortunately, most lenders are limited in the length of term they can offer, but at Ritchie Bros. Financial Services we have the used equipment expertise needed to extend financing terms far longer than traditional lenders.
As a standard rule of principle, lenders don’t want the ‘age of asset’ + ‘length of term’ to exceed 10 years. At Ritchie Bros. Financial Services, we operate on a totally different model. We were designed to help small and medium-sized companies get the financing they need to purchase used equipment to get started and grow. Sometimes these customers can’t afford the newest equipment, so have to shop for older gear and we are here to help, with financial plans that work for all types of companies.
Looking at the graphic above you will notice that most lenders don’t want to extend loans beyond 10-year-old equipment. With Ritchie Bros. Financial Services, we can offer most approvals up to 72 months and you’ll save close to $1000 per month on your payments.
Because of our expertise and access to global market trends and data, we can offer longer terms for used equipment than anyone else in the equipment finance industry. In 2020 the average term length at Ritchie Bros. Financial Services was 30 months. Now, in September 2022, we are closer to 60 months. We are also currently experiencing our highest approval rating ever—people are taking advantage of our financial solutions and reaping the rewards of lower monthly payments.
With an extended term, customers also have the option to increase the overall value of their loan—with smaller monthly payments over a longer term—so they can get that newer piece of equipment into their fleet sooner. Ritchie Bros. Financial Services is providing our customers an advantage over other lending companies.
Let’s discuss how we can support your business and equipment financing needs.
