What are the Available Generator Financing Options?

What are the Available Generator Financing Options?

Whether you are a homeowner or a businessman, a diesel generator has all the solutions for your power needs. From managing routine power outages to providing electricity to construction site machinery, a generator can help you in countless ways. 

Despite these benefits, purchasing this expensive device can be a real struggle for many people. But luckily, many generator suppliers offer financing options to allow people meet their power needs even when they have a limited monthly budget.

United Tech Power offers three generator financing options. Each option has its own benefits and disadvantages. That is why it’s important to know the difference between them so that you can make a more knowledgeable decision and select the most suitable option.

Here is a brief explanation of each generator financing option that United Tech Power offers.

Fixed-rate financing

In this financing option, the interest rate remains constant until the loan is entirely paid off, making it simpler to budget monthly expenses. 

The main advantage of choosing this generator financing option is that you don’t face trouble associated with the unexpected increase in monthly payments. 

Its process is also very straightforward, making it easier for a common man to understand how it works.  

Adjustable-rate financing

In this financing option, your interest rate varies during the loan term. Normally, the interest rate remains unchanged for a certain time duration. When that period ends, the interest rate will be adjusted while keeping in mind diverse factors. The initial rate of interest is generally below-market rate, whereas the new rate is adjusted according to the market rates.

The reason people choose this generator financing option is that it is comparatively cheaper than the first option, at least for the first few months or years. You can save a few hundred dollars when you pay a below-market interest rate for a certain time period.

Short-term financing

As the name suggests, a short-term financing option comes with a short term length. It helps you pay the whole amount of the generator back quickly.

Although the interest rate of short-term loans is usually more than that of long-term loans, you get a chance to fully pay offyour loan in less time, which does not let the interest build up, making the total interest less than the interest on a long-term financing option.

Should you finance or buy a generator?

Both financing and buying a generator have their own perks. If you can easily pay thousands of dollars to purchase and install a generator, then buying it outright is a better option as it will allow you to avoid the interest and upfront fee.

On the other hand, if you need to purchase a generator but are unable to pay its entire payment at once, financing it might be the best option you have. It will allow you to distribute the entire payment over several months or even years. You won’t have to wait for years to save generator payment and install it only when you have the full payment.

Summing it up

United Tech Power has different generator financing options for you, so you can choose the one that best meets your needs. Contact us today to learn more about these financing options.