Shipping Container Finance   Leave a comment


Financing Shipping Containers

Our partners are financial experts that understand the need to acquire equipment quickly and efficiently… especially when dealing with the logistics and shipping industries. Our shipping container financing partners can get your finance structured to accommodate shipping & cargo containers as well as material handling equipment and container logistics operations globally. Shipping container Trader partner financing is available for steel shipping containers, aluminium cargo containers, converted containers and self storage our used shipping container leasing programs are the best options in the industry:

Intermodal logistics
20 Foot, 30 Foot, 40Foot, 45 Foot Shipping Container Finance Programs
Customised Trailers, and specialist builds
ISO Dry Freight Cargo & Shipping Containers
Refrigerated Shipping Container Finance
Self-storage Container Finance
Mini Storage Container Leasing (see our site www.fabandsite.co.uk)
Flat Rack Containers 20 Foot, 40 Foot
10′ Storage Containers (specialist builds new and used)

Why might you need finance on a container? Simply, for a single purchase most people don’t – the value of one container is low enough that it can be funded from cash flow or a credit card. However for multiple units this may not be possible. Typically multi unit purchase is not for onward resale – commonly it’s for the build of new yards, storage facilities or similar developments – and here lies the key to finance.

In these difficult times it might seem that getting finance for almost anything is going to be hard, not least a shipping container. But like most other durables, containers are an asset – and therefore can be financed just like most other assets.

Whilst traditional banks will offer asset based finance or lease hire for things like cars or vans they may shy clear of containers. Certainly certain finance methods such as contract lease, contract hire and operating lease are less applicable as generally there is no expectation that the asset (the container) will be ever be returned [cars for example are generally handed back to the finance company after a certain period of time and a new lease taken on a more modern vehicle]. Nevertheless there are a number of lender who will provide finance for container purchases.

So what’s the advantage of asset finance over a traditional loan?
In a word – cost. A general purpose business loan could be used for many things; a lot of which do not involve an asset or involve assets that on purchase immediately loose a huge percentage of value. For example consider a mezzanine floor – uninstalled it might be worth thousands, but once it’s put in situ it’s worth is negligible as taking it down, moving it and re-fabricating it exceeds the worth of the parts. When you secure your loan on a tangible asset the lender knows they’ve got a lot better chance of getting some money back if you default. Therefore their risk is lower and consequently they can offer a better percentage rate.

As ever it’s key to shop around and to go to specialists – and turn to the internet to find the best deal! You need to work with a lender that has experience of container finance as it’s a niche market – but these lenders will have a far better understanding and consequently be able to offer the best loan rates.

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Posted July 20, 2011 by shippingcontainerlockbox in Uncategorized

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