Discover Our Streamlined Process for a Construction Equipment Loan

May 15, 2022

Construction opportunities are everywhere. The Texas Gulf Coast region needs new and improved buildings, roads, residential areas, retail, hospitals, schools, and more infrastructure to keep up with the growing population in our part of Texas.

In fact, official U.S. Census data indicates that the population in the Gulf Coast region grew by 19 percent (about 1 million people) during the past decade. That’s a lot of people in a short period of time.

This is good news for construction companies and contractors that are looking to find new opportunities to provide construction services and generate income. The challenge is making sure you have enough equipment to handle the construction project needs of each job.

To purchase new or used equipment for your construction jobs, we recommend a construction equipment loan. Find out why this is a good choice for constructors and how we make the process easy to obtain funding for your equipment purchases.

Types of Construction Equipment To Purchase Through Financing

No two construction jobs are alike. That means you might need different equipment for various jobs that you are supporting at different locations.

For example, you might be working on a ground-up construction project that requires digging equipment such as excavators, backhoes, and other heavy-duty equipment. Meanwhile, another crew might be simultaneously supporting a residential construction project that requires bulldozers, jackhammers, and cranes.

You could certainly lease or rent this equipment for each job. However, if you plan to scale your business and continue to take on more and larger projects, then you should consider the opportunity to purchase new or used construction equipment that can be deployed at various job sites.

Consider this sample list of construction equipment that you could purchase for use in the construction industry:

  • Aerial Lifts
  • Backhoes
  • Boom Lifts
  • Bulldozers
  • Cold Planers
  • Compactors
  • Concrete Mixers
  • Drum Rollers
  • Dump Trucks
  • Excavators
  • Forklifts
  • Jackhammers
  • Manlifts
  • Pile Driving Machines
  • Pipe Layers (for oil and gas pipeline projects)
  • Scissor Lifts
  • Skid Steer Loaders
  • Telehandlers
  • Tower Cranes
  • Trenchers
  • Utility Vehicles

Once you identify the type of equipment that you need to purchase for current or future jobs, you can work with our bank to start the process of obtaining this equipment. We understand that it could be a significant leap to go from equipment leasing to equipment purchasing. That’s why we streamline the process of helping you obtain a heavy equipment loan so that you spend more time focused on running your business than worrying about the application process.

How We Streamline the Construction Equipment Loan Process

We follow a step-by-step process to help you arrive at the best possible position in purchasing used or new construction equipment. Find out how you can obtain a loan as a contractor by working with our bank.

1. We evaluate the equipment value and structure. For each piece of construction equipment that you are interested in purchasing, we will apply our expertise to assess the value of the equipment and help you determine whether the prospective purchase fits your budget.

For a new equipment purchase: we will review the purchase price, expected cost to maintain and service the equipment over time, expected length of service, and expected sales price at the end of its usefulness for your company.

For a used equipment purchase: we will review the current market value of the equipment, the expected purchase price, its expected usefulness, and the expected sales price at the end of its life cycle.

This baseline assessment allows us to understand the amount of financing we can provide you with for each piece of equipment. If we check all the boxes, then we will offer lending options for this equipment.

2. We evaluate the expected use of the equipment. Our goal is to ensure that the equipment fits an acceptable business use. In other words, will the use of a certain piece of equipment provide value to the job(s) that you are working on?

We want to ensure that if you apply for financing to purchase a dump truck, scissor lift, or other type of heavy-duty equipment, there is a corresponding project where this equipment will be put to use.

3. We evaluate your qualifications for borrowing. We also evaluate your credentials as an applicant. Some of the key factors in our lending decision include:

  • Repayment ability to eventually pay off the loan.
  • Financial strength and profitability.
  • History of construction project performance.
  • Current and future construction projects.
  • Financial strength and credit score of the individuals guaranteeing the loan.
  • Ability to demonstrate strong character as a borrower.
  • Whether you have an existing relationship with our bank.

Our bank is focused on building long-term relationships with our customers, not just completing a transaction to purchase one or two pieces of construction equipment. We aim to build on the initial engagement to continue to meet your needs as you grow and take on more construction jobs. That’s why we focus on identifying borrowers with strong credentials to create a positive working relationship.

4. We will review your loan documents. To get started on the application process, we ask that you provide us with documentation and records to support your qualifications as a borrower including but not limited to:

  • Completed loan application providing us with sufficient information about your business.
  • 3 most recent years of filed tax returns for the business.
  • 3 most recent years of financial statements and cash flow reports that capture the health of your business.
  • 2 most recent years of personal tax returns for the individual guarantors on the loan.
  • Information about the equipment you intend to purchase.

We may request other documentation, such as construction project plans. This will allow us to match up the intended use of each type of equipment with the expected purpose at the job site.

5. We will expedite the loan approval process. If your loan application satisfies our initial review, then we will send the loan package for final approval. Unlike other banks that require long reviews and the involvement of multiple parties, we keep our loan approval process in-house.

Our board meets regularly to review the viability of each proposed loan. When your application is approved, then we will quickly finish the process of funding the loan so that you can complete the purchase of new or used equipment for your construction jobs.

Through a streamlined process, you can spend more time using the equipment at the construction site, not waiting around for approval while the clock keeps ticking. This way, you can satisfy critical project timelines for your clients.

Get Started Today on Construction Equipment Financing

We invite you to discover the Texas Gulf Bank difference. We live, work, and play in communities where the population is growing and construction is taking place. We’ll help you grow your construction business by accessing valuable funds to purchase the equipment you need to get the job done at the construction site.

Use the contact form below to get started with the loan application process. Or, give us a call to discuss your equipment purchase needs and available equipment financing options. We look forward to discussing construction equipment loans for your business and starting a fruitful working relationship!

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All Loans Subject to Credit Approval