Ah, the skid steer—an unsung hero of the construction site, the agricultural field, and beyond. These compact, powerful machines, like a trusty steed, stand ready to tackle the toughest of tasks. But before you can ride off into the sunset with your used skid steer, there's a journey to embark upon: the quest for the perfect financing.

Purchasing a used skid steer can be a game-changing investment for your business. Whether you're in construction, agriculture, or any other industry that requires heavy equipment, a skid steer offers versatility and power at a fraction of the cost of new machinery. However, finding the best financing options can be a journey, especially if navigating it alone. This guide will walk you through the various financing options available, ensuring you secure the best deal regardless of your credit or financial situation.

At Capital MBS, we specialize in providing creative financing solutions tailored to your needs. We work with any credit and any situation, helping you get the equipment you need to keep your business moving forward. For more information, give us a call at 215-688-5806 or visit www.capitalmbs.com.

Understanding the Value of a Used Skid Steer

A used skid steer can be a valuable asset, offering cost savings and reliability. The value proposition lies in its ability to perform just as well as a new machine but at a significantly reduced price. Here's what you need to consider:

Key Factors That Determine Value

1. Age and Hours of Operation: These are critical in determining the price. Machines with fewer hours of operation tend to hold their value better, but older machines can still offer excellent value if well-maintained.

2. Brand Reputation: Brands like Caterpillar and Bobcat are known for their durability and long-term value, making them a smart choice when buying used.

3. Maintenance History: A well-documented service history can significantly increase the reliability and lifespan of the skid steer.

4. Attachments and Features: Extra features or attachments can increase the functionality and, subsequently, the value of your skid steer.

Exploring Financing Options

Securing the right financing is crucial for maximizing your investment in a used skid steer. 

Here are the options available:

1. Equipment Loans: A Reliable Path to Ownership

Equipment loans are one of the most straightforward financing options. They typically come with fixed interest rates, allowing you to budget more effectively. With an equipment loan, you can own the skid steer outright after the loan term ends.

Benefits:

• Fixed interest rates offer predictability.

• Ownership of the equipment at the end of the loan.

• Potential tax benefits through depreciation and using IRS Section 179

Considerations:

• Depreciation risks, especially for older machines.

• Interest rates may be higher for used equipment.

     2. Equipment Leasing: Flexibility with Lower Upfront Costs

Leasing is ideal if you need to upgrade frequently or want lower monthly payments. Equipment leasing can also benefit those with bad credit, as the requirements are often more flexible. Plus, your bad credit will begin to strengthen once on-time monthly payments are reported to the credit agencies. Many equipment lenders report to Paynet Business Credit Agency. 

Benefits:

• Lower upfront costs.

• Flexibility to upgrade to newer models.

Considerations:

• You don't own the equipment at the end of the lease.

• Possible penalties for early termination or excessive wear.

1. Equipment Financing Agreements (EFA): A Balanced Approach

An EFA combines the benefits of both loans and leases. You gain ownership of the skid steer at the end of the term but with more flexible payment options.

Benefits:

• Ownership at the end of the term.

• Flexible payment structures.

• Potential tax benefits.

Considerations:

• It may be more costly over time than a traditional loan.

• EFAs are less common, so options may be limited.

Critical Factors in Financing

When seeking financing for your used skid steer, the following factors play a crucial role in getting a skid steer loan:

1. Your Fico 2 Credit Score

Your FICO 2 score will significantly impact the interest rates and terms you receive. However, at Capital MBS, we work with any credit situation, providing you with options even if your credit score isn't perfect.

2. Down Payment

Offering a down payment can lower your monthly payments and overall loan costs. It also demonstrates your commitment to the lender, reduces lender risk, and can help you secure better terms.

3. Interest Rates

Interest rates are a crucial element in your financing decision. Shop around to compare rates, but Capital MBS can offer competitive rates tailored to your situation.

4. Loan Term

The length of your loan or lease will determine the total amount of your monthly payments and total interest paid to the lender. A shorter term will have higher payments but less interest, while a longer-term offers lower payments but higher total costs.

Your loan or lease length shapes your monthly payment and total interest. A shorter term brings higher payments but lighter interest, while a longer-term eases your monthly burden but carries the higher total cost of the skid steer. 

5. Total Cost of Ownership

Beyond the purchase price, consider the total cost of ownership, including maintenance, insurance, and potential repairs. This holistic view ensures you're financially prepared for all aspects of owning a skid steer.

The Financing Process: A Step-by-Step Guide

Here's how you can navigate the financing process effectively:

1. Assess Your Financial Situation

Evaluate your time in business, credit score and  cash flow to figure out how much you can afford. Capital MBS offers creative financing solutions, so even if your financial situation could be better, we can help you find a workable plan.

2. Research and Compare Lenders

Not all lenders are created equal. Compare options and consider factors like interest rates, terms, and lender reputation. Capital MBS offers flexible, customized financing solutions that meet your specific needs.

3. Get Pre-Approved

Getting pre-approved gives you a clear budget and strengthens your negotiating position. It also speeds up purchasing when you find the right skid steer.

4. Choose the Right Skid Steer

Consider factors like brand reputation, maintenance history, and attachments. Make sure the skid steer you choose fits your business needs and budget.

5. Finalize Your Financing

Work with your chosen lender to finalize the financing. At Capital MBS, we ensure a smooth, transparent process, guiding you every step of the way.

6. Complete the Purchase

With financing secured, finalize the purchase and ensure all necessary paperwork is in order. At this point, you'll officially own your used skid steer—or be well on your way, depending on your financing choice.

Maintenance and Insurance: Protecting Your Investment

Once you've acquired your skid steer, maintaining it and securing the right insurance is vital to protecting your investment.

Maintenance

Regular maintenance ensures your skid steer remains reliable and extends its lifespan. Follow the manufacturer's recommended maintenance schedule and address any issues promptly.

Insurance

Insuring your skid steer protects against damage, theft, and liability. It's critical to ensure your investment is safe and your business remains operational.

Conclusion: Take the Next Step with Capital MBS

Financing a used skid steer is a wise option for many businesses, but choosing the right financing option is essential. Whether you're dealing with bad credit, seeking flexible terms, or just want to explore your options, Capital MBS is here to help.

Our creative financing solutions are designed to work with any credit situation, ensuring you can secure the equipment needed to grow your business. Don't let financing hurdles stand in your way—reach out to Capital MBS today at 215-688-5806 or visit www.capitalmbs.com. Let's find the best financing solution for your business together.