Construction Equipment Financing for Your Business
There are several reasons to consider construction equipment financing before making a big purchase, not the least of which is the high price tag that comes with most machinery. While the equipment is a necessity, so is paying all your other overhead costs; you can’t very well buy a new excavator if it means you aren’t able to pay your insurance bills. In addition to issues of financial solvency, leasing a new rig can put you in a position to upgrade it when a newer model comes out. You may be attracted by the idea of outright ownership, but in the world of construction you are often better served by financing.
More Bang for Your Buck
If you don’t lease equipment and instead pay the entire cost, you might be limited in what you’re able to purchase. Spending $10,000 will always sound better than paying $20,000, but the more expensive equipment can save you money in the long term. If the cheaper model will be obsolete in two years, you’ll just have to buy something to replace it. You’ll also have to figure out and probably pay for disposal. If you choose the tool or machine that costs more but opt for monthly payments, you can manage your money and not have to worry about getting a replacement for many, many years.
What makes construction equipment financing even more appealing is the option to upgrade once the equipment has run its course. If you don’t lease, you have to continually buy new machines and hope you can sell or exchange the old ones. An upgrade on your lease allows you to work with newer, better equipment without having to figure out what to do with the outdated thing you’re no longer using.
You may know exactly what items you need in order to do a particular job but haven’t had the time to research the newest and best options. Construction equipment financing companies have fairly extensive knowledge of what’s available and at what cost; you can use their expertise to help make the right decision as to what’s best for you and your business. Some financing companies even specialize in certain types of equipment so you can skip the research all together and just take your questions to them.
To maintain the integrity of your work, you want to have the best equipment. Even if your purchasing power is limited, the option of financing allows you to acquire top-of-the-line assets and keep the quality of your construction as high as it can be.