Deciding if and when to spend money on large capital-equipment expenditures is a strategic part of any business, and the tree care industry is not immune to that struggle. Buy outright or finance? Long-term rental or RPO (rental-purchase option)? These are questions being mulled on a daily basis, and interest rates, tariffs and business/economic outlook are all factors to consider. “Uncertainty” may be the keyword for the current economic situation, according to a group of finance companies we polled at TCI EXPO ’25 in St. Louis, Missouri, in November.

Making a decision to acquire big equipment can be challenging at any time, even more so in an uncertain economy. Here, a prospective buyer confers with a BIK Boom Trucks rep during TCI EXPO ’25 in St. Louis, Missouri, last month. Photo by Kyla Blasher.

These financiers, all exhibitors at TCI EXPO, generally, but not completely, agree that most tree care companies have been taking a “wait-and-see” approach. But that may be changing.

Trepidation is the norm
With uncertainty comes trepidation and general wariness about big financial decisions. “I would say there’s more uncertainty now in the marketplace than there has been in a while,” says Richard Scheib, vice president of sales for Ascentium Capital, based in Dover, New Hampshire. “Companies just want to make sure they have the capital coming in to make the payments. It’s a matter of them getting comfortable with the decision.”

“I would say this year we saw more inconsistent business flow than in prior years,” says Joel Schuman, vice president of national business development at Western Equipment Finance, in Devils Lake, North Dakota. “I think people are concerned with the economy, and many have gone to the sidelines and are saying, ‘I’m going to let this play out and see what happens.’”

But Andrew Halladay, business development officer from Oakmont Capital Services in West Chester, Pennsylvania, has a slightly different perspective. “I don’t see any customers who say, ‘I’m not sure about the economy. I don’t want to buy.’ They forecasted the next six to 24 months based on work they have coming up. Any customer who is worried about the economy is usually a smaller one or they’re not even coming to the plate.”

“Some people are leasing and some are buying more, and we’re seeing an uptrend in rentals, too,” says Seth Davis, with AP Equipment Finance. Photo courtesy of Chris Hall.

Buy, lease or rent, and Section 179 implications
The decision to lay out a large amount of cash and buy capital equipment outright, versus leasing or selecting a rental option, is unique to every business and is based on their current circumstances and future outlook, and finance companies are there to help them through it.

Seth Davis, vice president of business development at AP Equipment Finance in Bend, Oregon, starts the conversation. “In the arbor space, (companies) are going to need financing, because equipment’s going to break down, equipment’s going to age. The current economic conditions change the styles the customers move forward with on financing options. It’s meeting their needs based on the economic conditions. Some people are leasing and some are buying more, and we’re seeing an uptrend in rentals, too. The finance companies have to be flexible and willing to work with the customers,” says Davis.

“The Section 179 tax advantages that were extended with 100% depreciation really help customers pull forward and make purchases now,” says Davis.

JoAnn Cucciarre with Northern Atlantic Financial, located in Souderton, Pa., has a more direct approach. “At Northern Atlantic, we don’t do any leases. We do everything as a finance. But sometimes a customer will do a rental to see if they like it before they’re going to make the purchase. But with renting, you never really recover your money. With financing, you’re able to write that off.

“Up until probably two months ago, everything was a lot slower this year than it ever has been,” says Cucciarre. “But now people are starting to look at their taxes and are realizing (they) have to buy something to write off. And the One Big Beautiful Bill Act enhanced it (Section 179), so people could write off more for the 2025 calendar year. You just have to buy by December 31.”

“We work with some manufacturers and distributors that are looking to bring on additional lines, and they put that on pause because the tariffs are adding 25 to 30% to the equipment cost in some instances,” says Joel Schuman. Photo by Don Staruk.

Tariffs and interest rates
The talk of varying tariffs imposed on imported goods and the potential lowering of interest rates by the federal government makes for hot topics these days and contributes to the hesitation that exists, according to our sources.

“I would say the interest rates are not really impacted,” Scheib says. “It just lends to the level of fear that happens to be out there right now. The level of uncertainty. It takes them a little bit longer to make that purchase. And then you have the tariffs, too. Obviously, the cost of goods depends on whatever country they’re coming from.”
Davis adds, “As for tariffs, manufacturers are looking for solutions. What’s the best way to approach the market, either absorbing the tariffs or passing them along as price increases? As a finance company, we look to help that manufacturer find new strategies to get the product into the hands of our customers.”

“The tariffs themselves don’t affect finance,” says Halladay. “They just affect the cost of the machine. If it’s a foreign manufacturer or a manufacturer in the U.S. that buys foreign parts and imports them, that can have an effect on it (the cost), and each one is a little bit different. As far as rates are concerned, rates have trended downward in the past 12 to 18 months, but not a huge trend downward. I don’t think rates are affecting (purchasing decisions) in the grand scheme of things.”

“The feds have done a couple of recent quarter-point cuts, but that does not immediately translate to a bank,” says Schuman, “so the rates aren’t dropping as quickly as we would like them to. We have been impacted by tariffs, but we haven’t made any substantial adjustments for them. We roll tariff fees into what we call a soft cost in financing. We’re watching it, but we have not yet made any adjustments on daily processing.

“But at the same time, we work with some manufacturers and distributors that are looking to bring on additional lines, and they put that on pause because the tariffs are adding 25 to 30% to the equipment cost in some instances,” Schuman says. “Twenty-five percent on a $500,000 piece of equipment can price you out of the market.”

“More people are definitely financing more than ever, because everything has gotten so expensive. Hardly anybody is writing a check anymore,” says JoAnn Cucciarre. Photo by Kyla Blasher.

The forecast?
Even though trepidation and hesitation have factored into pulling the trigger on financing equipment this past year, there seems to be a lot of optimism from these finance companies that help tree-service organizations navigate that path.

Cucciarre says she feels that, even though there is a lull, people still need financing. “We finance anything from their chipper and stump grinder to their crane truck. More people are definitely financing more than ever, because everything has gotten so expensive. Hardly anybody is writing a check anymore, and to optimize their taxes for 2025, people will make those purchases and take possession of equipment by December 31.”

Halladay says he believes the best is yet to come for those who adapt. “We found that a lot of the companies that are doing well are the ones that are better at business. A lot of people who got into the arbor industry in 2020 and 2021 realized you didn’t have to know much to do a lot of work. Now you’re seeing companies that are a little bit larger consolidate, and are able to do the same work more efficiently. So the companies that are still in business are the ones that are strong, and they’re still buying. We’re seeing that. Last month was our best month ever.”

Conclusion
Scheib puts a finishing touch on what the future holds. “The reality is, people still need to make those purchases, and they’re probably going to do it. It’s just that they’ve got to get over that little bit of a hump. And that’s what happened really in the last month or so,” says Scheib. “It’s just that psychological barrier they have to get through to actually move forward and pull the trigger. I think December might be pretty busy.”

Tim Bartelt is a freelance writer based in Buffalo Grove, Illinois, who has more than 20 years of work experience in the outdoor-power-equipment industry.