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The Advantage in the Waste Industry
Knowing how to prepare your company prior to seeKing financial sources can be
In todays volatIle fInancIal envIronment, finding a lending source capable of meeting your equipment purchasing objectives can be a daunting task. With access to capital shrinking and delinquencies on the rise, lenders have been forced to tighten up their underwriting standards or exit the marketplace altogether. This can be problematic for owners of waste hauling companies who find themselves unable to purchase the vital equipment necessary for growth and sustainability. Knowing how to prepare your company prior to seeking financial sources can be the difference between success and failure. Following are some practical steps to consider before applying for credit.
WasteAdvantage Magazine
January 2010
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always ensures that you get the most competitive terms for your equipment loan since there is no middleman. Not only will you get the very best rates and terms, but you will avoid having your credit report pulled by multiple sources which can The Advantage in the Waste Industry negatively impact your credit score. Also, since direct lenders are tightly regulated they are held to a higher level of scrutiny when it comes to customer disclosure so there are typically no hidden surprises. Direct lenders should always be your first option, but keep in mind that the credit requirements tend to be more conservative than a broker. Brokers may offer a level of convenience and lenient underwriting not offered by bank-owned sources, but be prepared to pay for this. Another feature to look for is industry experience. Lenders that are familiar with the waste industry are better suited to understand your specific business needs as a waste company, as opposed to a local bank that may be apprehensive about financing a piece of equipment they have never heard of. Industry-focused lenders are also taking on less risk when financing a piece of equipment, since they have a portfolio of customers in that industry to re-market to in the event of a default. Talk to other industry professionals or dealers selling the equipment for the best recommendations. Dealers will not only have a list of trusted lenders but they may also be able to provide special financing programs due to the volume of business they refer to a particular lender.
WasteAdvantage
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WasteAdvantage Magazine
January 2010