As Seen In Recycling Today!

The economic uncertainty of today’s business environment poses many challenges for businesses large and small. Even with severe inflationary pressures, consumers continue to spend and produce additional recyclables, and businesses continue to push forward and look for ways to grow and gain efficiencies. For a recycling company, having the right resources in place ultimately can make the difference between success and failure. Many recyclers are looking for new ways to improve their profit margins amid the market uncertainty; acquiring the right equipment for your business and knowing how to pay for it shouldn’t be among your uncertainties.

Measured by revenue, the market size of the recycling industry is $9.4 billion this year, with a forecasted compounded annual growth rate of 5 percent for the next seven years at least. Much of this growth is coming from consumer spending, which generates plastic and paper packaging, thus raising the demand for recycling services.

At Amur Equipment Finance, the recycling industry represents a growing sector of our overall portfolio. We specialize in providing financing solutions for the companies that provide services related to the handling of recyclables. We consistently finance industry-related equipment, such as material handlers, industrial balers, compactors, shredders, containers and roll-off trucks.

The rate at which companies choose to finance their equipment depends largely on the total acquisition amounts and individual business circumstances. According to research by the Equipment Leasing & Finance Foundation, headquartered in Washington, companies with less than $25,000 in equipment acquisition amounts finance at a rate of roughly 68 percent. When we look at the next-higher category of capital requirements, between $25,000 and $250,000, the rate at which businesses choose financing options increases to 81 percent. In other words, higher capital outlay results in higher financing activity.

As companies move into higher equipment acquisition amounts, the capital outlay requirements can begin to place financial pressure on their overall cash flow and business performance. When astute businesses look for better ways to improve cash flow and conserve capital, they regularly take advantage of equipment financing and leasing solutions to address both business concerns.

“Choosing to finance or lease your recycling equipment with an independent instead of paying with cash or going to the bank can unlock a whole host of opportunities for your business,” Amur Senior Vice President of Sales Brent McWhorter says. “It can be an overwhelming process, but it certainly doesn’t have to be if you have a trusted partner to guide you through it.”

As such, we have compiled a list of the benefits small business owners frequently can realize when using financing to make a new or used equipment purchase.


Financing lets you keep capital free for investments or other business expenses instead of tying it up in fixed assets. Reinvesting the cash conserved can bring real profits to businesses and higher returns on investment. In addition to the option to reinvest in the business, the added benefit of having liquid assets ensures a well-prepared operation ready to face any market or expand to meet future demands in the recycling industry.


Using an equipment finance company often requires less money to get started than traditional bank loans. Bank financing typically requires 20 percent down, while an independent lender usually offers financing a complete solution, or in some instances, as little as one or two payments in advance (2 percent to 4 percent).

Flexibility in financing is incredibly important. Many small operations don’t have the capital on hand needed to meet the down payment demands of traditional bank loans. The ability to meet small businesses where they are, get a true sense of their operations and work as a partner who is equally invested in the success of the customer is one of the most powerful opportunities of working with an independent financing company.


Financing with an independent finance company proves a new source of credit for present and future needs, while existing bank lines remain intact for other uses. Recycling equipment financing also can be a great way to build business credit. For example, in addition to Experian, PayNet is a credit reporting company that tracks and reports business credit and can be just as important as Experian and TransUnion as an indication of business credit health and age to get the best terms possible.


An additional benefit provided in instances where 100 percent financing is available is the ability to finance soft costs that can include installation, maintenance, taxes, shipping charges and even software. This is another example of cash savings to be had. With fewer fees coming out of pocket upfront, the entire equipment financing package is wrapped up in one easy-to-manage monthly payment, and the customer is well-prepared for the road ahead.


Financing before the new year allows businesses to gain further mileage from their recycling equipment purchases because of the tax savings from the Section 179 incentive. This IRS program allows you to accelerate depreciation on the purchased equipment during the first year, rather than spreading it out over the first several years, and receive a deduction on new or used equipment purchases made in the previous year.


With a simple online application, business owners can receive approval from $10,000 to $500,000, often same-day or within 24 to 48 hours, with 100 percent financing and terms up to 84 months. Amounts up to $3 million can be completed in as little as two weeks. Technology allows for apps like E-Notary and DocuSign to make document signing and execution less of a hassle during an already busy workday.

“As a credit manager, I look for opportunities to build relationships with our customers. We understand every business has a unique story, and it’s important to look at the business within its entire context,” Amur Credit Manager Nate Pfeifer says. “Clear and consistent communication and smart financial decisioning with the customer is the best way to set each business owner up for success.”


When entering any finance or lease contract, it is important to remember that you are commencing a long-term relationship with a provider—usually over a period of several years. Choosing a finance partner that has specific knowledge of your industry will better serve your long-term business goals and objectives because the provider is well-suited to help guide you through the overall process and can offer solutions that best meet your individual business needs.

Flexibility is the second key component. All businesses are not created nor operate equally, and each one has its own unique challenges, often resulting in varying credit profiles. Traditional banks generally do not have expertise in specialized equipment and have rigid lending requirements in place before they will finance your equipment purchase. Choosing a finance company instead of a bank can give you the financial flexibility that you might need. Also, look for a finance provider that has the resources to structure payments according to your specific business needs and one that is willing to work within your credit profile.

Finally, look for personalized service. With unique equipment types and large capital outlays, the overall financing process can often be complex. A finance company that fully manages these complexities for customers can make an enormous and positive difference in the overall financing or leasing experience.

If you are a recycling equipment manufacturer that isn’t offering finance and lease solutions to your customers, then you could be relinquishing predictable and steady income. If you are operating a recycling business that isn’t fully using finance and lease solutions for your equipment purchases, then you could be tying up too much working capital—capital that can be better served elsewhere in your business operations.

Brent McWhorter is senior vice president of sales, and Nate Pfeifer is a credit manager at Grand Island, Nebraska-based Amur Equipment Finance. Visit for more information.