Equipment financing comparison: fast PurchaseFlex pre-approval vs. typical bank process.

An equipment financing pre-approval is very much what it sounds like: getting the “OK” from a financial institution to go ahead and purchase an asset, knowing that the financing funds will be ready to go when you need them. But not all pre-approvals are created equal – and for buyers at Ritchie Bros. and IronPlanet auctions, having the right pre-approval in place can mean the difference between getting the equipment you absolutely need versus going home empty-handed.

Let’s look at how equipment financing pre-approvals compare when buying at an auction: a typical bank’s financing pre-approval against a PurchaseFlex Financing pre-approval.

Pre-approving with banks: Time-consuming, restrictive, unpredictable rates.

When you approach your bank for pre-approved funds, a long process begins of application, asset, and dealer approvals – a process that can take weeks. Chances are, the auction you’re planning to attend is less than a couple weeks away and now time is not on your side.

Bank pre-approvals tend to be quite restrictive, too. Your bank is going to want to know which piece of equipment you plan to buy, and will approve it to a maximum amount of what they determine is its fair market value. But as you know, auctions can be unpredictable: equipment may sell for higher than you anticipated, or you may decide to try and buy a different machine after testing out a few items in the yard. Unfortunately, that bank pre-approval was only built to cover a specific asset for a specific price. Call your bank and tell them you need your pre-approval changed, and they might tell you it’ll be another couple of weeks – or not approved at all. And you can likely forget about equipment that’s ten years old or more – most banks will only finance newer equipment.

Finally, while your bank’s rate may be low at the beginning of your contract, their rates often fluctuate throughout a term. So, if you’re trying to plan and manage your cash flow for the future, your bank financing loan adds unnecessary unpredictability.

PurchaseFlex Financing pre-approvals: Fast, flexible, and predictable.

We heard loud and clear from our auction customers what they want from equipment financing: a speedy process, ability to “buy what you want”, and easy to understand rates and terms. So that’s why Ritchie bros. created PurchaseFlex Financing to best suit auction purchasing.

Getting pre-approved for PurchaseFlex Financing isn’t a two-week process. In fact, it’s rarely ever a two-day process: most of our applications are reviewed and approved on the same day. So even if you’re only deciding the day before to bid in an auction, it’s not too late to get your financing lined up.

PurchaseFlex Financing is all about flexibility, that’s why it’s right there in the name. Our pre-approvals aren’t built for single assets at pre-determined pricing. Instead, they cover a wide range of equipment types and ages. Every PurchaseFlex Financing pre-approval comes with an approval amount and outlines the types of equipment you can buy, along with the age ranges, rates, and terms. Gear that’s more than ten years old – or twenty years old – is no problem with PurchaseFlex Financing, too.

Because everything at auction sells for fair market value, there’s no need to evaluate individual assets and selling prices. You missed out on that four-year old dozer you were planning to buy, but a six-year old backhoe is about to sell that fits your PurchaseFlex pre-approval? No need to do any further paperwork. No need to call us back. Go ahead and bid – you’re covered.

And if you leave the auction empty-handed? Don’t worry – your PurchaseFlex Financing is portable, meaning we can help you finance equipment at another Ritchie Bros. or IronPlanet auction. Need to instead buy at a dealer, or from a private seller? Ritchie Bros. Financial Services can finance those purchases, too.

Our rates never fluctuate or change during the term either, so you can plan your business the way you need to.

Auctions and typical bank financing can be unpredictable. PurchaseFlex Financing isn’t.

Banks are financing “jacks-of-all-trades” and great in helping many Ritchie Bros. customers finance different parts of their business. But when it comes time to finance your equipment purchases, work with equipment financing experts. Talk to Ritchie Bros. Financial Services to learn more about PurchaseFlex Financing and how to be ready for your next Ritchie Bros. or IronPlanet auction, or however you buy equipment.

Apply for financing