The initial exchanges
The chance to expand a business comes with increased markets and shipping containers, while certainly not being free, are available to purchase in a number of ways. These include hiring them, short or long-term, hire purchase, rental-to-buy schemes or outright container purchase. The acquisition of these items can be made by obtaining them from container suppliers through a partner or direct to businesses. Whatever means becomes the easiest an order is placed with a supplier and the administration is handled by a finance partner, hoping for quick approval.
The calculation
The method and amount are obviously dependant on the company you place the request with. So first, the decision has to be made about what kind of finance is needed and then over how much time is required to pay for the container. It is mindful to note that if a longer time span for the loan is chosen then the monthly payments are smaller but in a shorter term the total overall cost will be less. A credit score will decide, to some extent, how reliable you are and therefore some may find that checking with a number of lenders will produce different outcomes.
Shipping container finance in detail
One way for financing a purchase is to opt for a hire scheme. These can be flexible and cost-effective, while the chance is there to hire some site accommodation too in the one deal. Some offer as few as 4 weeks rental and availability is nationwide so speed and efficiency make for an effective exchange. It is worth noting that the longer agreements make for a less costly deal facilitating more finance to be allocated to shipping jobs, infrastructure development and technological improvements.
The purchase is made by applying to a finance partner who assesses the needs of the company and the overall business set-up to offer a personalized solution. The deal is completed by the finance company depositing the money in your account or they may pay the supplier directly, allowing the container to hopefully start its many fruitful voyages, within a short amount of time.
The above system is patently even easier if you purchase the container outright rather than opting for the lease or loan method.
Rent to buy is an option for people who want to buy their shipping container and require to eventually have full ownership. With some companies this scheme is only available to the self-storage industry, allowing customers to expand their site and kick-start their self-storage businesses with a less risky option.
The necessary decisions will be made about choosing the right container size and then an agreement is made about the fixed monthly price and the length of the term. If there is any cost left after the end of the duration of the agreed time frame, then a payment will have to be made to complete the deal, but the container is now the property of the company.
A fixed rate term agreement is like the one stated above but your payments go towards the cost of the container as you progress and therefore is deducted from the overall price. It is useful to check on the functionality of the container before you take up ownership. It is a way of making a practical and financially manageable situation without enduring too high a cost at the outset.
