Tedders Financing

Inside the Tedders invoice: what gets rolled in

Most surprises in Tedders financing trace back to the line items between the equipment quote and the funded amount. The lender is funding what is on the bill of sale plus a defined set of allowable additions. The buyer often signs without reading which additions are in or out.

Base equipment. The unit itself, in the configuration the seller is offering. For Tedders, base pricing typically runs $18K to $25K depending on configuration, year, hours, and condition.

Attachments, options, and add-ons. Buyer-selected items show up on the invoice as separate lines. These are financeable in nearly every case. The decision is whether to roll them into the loan principal or pay them out of pocket at delivery.

Delivery, setup, and training. For equipment that ships from a distant dealer to a remote job site, delivery and rigging can add 2 to 5 percent of base price. On Tedders specifically, mobilization to the work site after delivery is the buyer responsibility unless negotiated otherwise.

Sales tax and use tax. Sales or use tax is owed in most states and typically rolls into the financed amount; the lender remits it at closing. State conformity rules vary, and a few states offer manufacturing or production exemptions that change the math. Confirm the tax line with the seller before signing rather than discovering it at funding.

Extended warranty, service contract, and consumables. Optional but common. Pricing typically runs $1,000 to $10,000 depending on equipment cost and coverage. Financeable. Decide whether to roll the warranty in before you sign the funding documents, not after.

Who actually finances Tedders

We see a wide range of buyer profiles on Tedders applications. The four below are the ones we approve most often. Pricing, term, and down payment differ across them, but each profile has a viable path to financing if the application is structured correctly.

The factors that move the rate on Tedders financing

When we approve Tedders, we price the borrower against five factors that have stable weights across the industry. The equipment itself is the easier part of the file. The borrower factors below are where the actual financing review happens.

• Equipment as collateral. The equipment itself secures the loan. Asset class, age, condition, configuration, and resale market depth all factor into how lenders advance against the cost.
• Financial statement quality. For transactions above $250,000, lenders weight the quality of financial statements: are they CPA-prepared, are they current within 90 days, do they reconcile to bank statements. Strong financial reporting opens up better pricing on larger transactions.
• Documented backlog or pipeline. Signed contracts, outstanding purchase orders, or a documented work backlog support the application story. For service businesses in particular, a pipeline that justifies the new equipment closes deals faster than projections alone.
• Use of equipment. Will the asset generate revenue immediately, will it replace an existing producing asset, or is it additive capacity. Revenue-replacement deals close most easily.
• Existing debt service. Lenders look at total monthly debt obligations against cash flow. Adding a new payment that pushes the debt service coverage ratio below 1.20 typically requires additional support or a larger down payment.

Diligence on Tedders: the items that matter

Equipment financing on Tedders closes cleanly when the pre-purchase walk catches the items below. When it does not, the issues surface post-funding, and the lender owns nothing of the resolution. Read the seller representation against the items below before signing.

• Pre-funding photo set. Take a complete photo set of the equipment at the time of purchase signing: serial number, hour meter, condition of major systems, attachments, and any documented damage. This photo set goes into your records and into the lender file if requested.
• Operator manuals and documentation. Get the operator manual, service manual, and any parts catalog at the time of purchase. Replacements are sometimes available from the manufacturer but slow and expensive. Documentation is part of the asset value.
• Recall and campaign status. Manufacturer recalls and service campaigns sometimes go uncompleted on used equipment. Verify outstanding recalls before purchase; some are mandatory and prevent the equipment from being registered or operated in certain jurisdictions until completed.
• Comparable sales data. Pricing checked against recent comparable sales from auction sites, dealer listings, and trade publications. A unit priced 15 percent above market signals either a premium configuration or a seller hoping the buyer does not check.
• Title or MSO clean. Title for titled equipment, manufacturer statement of origin (MSO) for new equipment that has not been titled yet. Check for prior liens, salvage history, and that the seller is the title holder.
• Electrical and instrument cluster. All gauges working, all warning lights cycling correctly on key-on, no fault codes stored in the ECU. Modern equipment with electronic controls is expensive to diagnose if anything is wrong.

Patterns to watch for on Tedders documents

Borrowers who run into trouble on Tedders financing almost never do so because of fraud or bad faith. They do so because something in the funding documents was different from what was discussed in conversation. The patterns below are the most common spots where that gap shows up.