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Navigating Propane Equipment
Navigating Propane Equipment
Finance Part 2:
Finance Part 2:
The Financing Approval Process
Tips & Strategies for Getting Financing Approval for Propane Equipment
By: Paula Summers
n the January 2023 issue of BPN, we illus- their business. Depending on the cost and type
trated different equipment finance solutions. of equipment you are acquiring, the finance
We discussed how equipment financing is approval process can vary.
Ian important tool to utilize when operating There is a saying that “he or she who
a business, because it allows business owners has the gold makes the rules.” It is important
added flexibility to acquire the most updated for propane companies to understand what
equipment and technology. institutions are looking for when ascertain-
By utilizing financing as a procurement ing their credit-worthiness for not only credit
tool, propane businesses can preserve cash, approval, but also for competitive rates and
which can be utilized in times of emergency for terms. A good lender should:
unexpected expenses or decreases in revenue. • Understand your business
From a borrowing perspective, preserving cash
demonstrates to lenders that you have stability • Provide flexibility to meet your cash flow
and operational efficiency. needs
VFG Leasing & Finance (VFG) has Most propane companies experience
worked with a variety of different propane higher revenues during the colder months. Ask
marketers since 1999, ranging from smaller your lender if they can offer flexible payment
companies to multistate organizations. Each structures with lower payments in the summer
individual company has very specific tax, cash and higher payments in the winter to match
flow and accounting needs that are specific to your cash flow.
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