If you’re thinking about construction equipment financing, then it pays to do your research. There are lots of factors that can influence the availability of funds and how competitive (or expensive) the costs are. But for savvy construction companies, there are huge upsides to equipment leasing and finance. So, it’s well worth doing some digging into which options are the best for your business. In this article, we look at the benefits of construction equipment financing in detail so that you can make an informed decision.
Why Get Financing for Your Construction Equipment?
There are several benefits to seeking equipment financing for your construction business. Here are some of the most popular…
#1 – Preserves Your Capital
For a business to succeed it’ll need continual investment. Some of the money you make from projects will need to be reinvested in salaries, premises, and marketing. But it’s also important to preserve your capital where possible, after all you don’t want it all tied up in the business. This gives you less flexibility and often leaves you unable to access it when needed. Getting your construction equipment on finance means you don’t have to tie up a large chunk of your capital at the outset. This means that you’re likely to be exposed to less risk and be able to utilize the cash for other profitable opportunities.
#2 – Benefit From the Latest Technology
Construction equipment is constantly evolving so it’s important to stay up to date. Investing in the latest technology can enable you to complete projects faster, more profitably, and to higher standards too. But brand new equipment can also be expensive and many businesses simply don’t have the money to invest upfront. Construction equipment financing allows your business to benefit from the latest technology without the large lump sum you’d otherwise need. This can make you more competitive and often pays for itself several times over.
#3 – Financial Flexibility
Construction equipment financing can offer you a lot more flexibility than other forms of borrowing. Financing options can be tailored to your specific business needs so that monthly payments are aligned with your cash flow. Some finance companies can also customize a solution that’s aligned with your accounting or tax requirements so that it fits your unique business model.
#4 – Access To Specialist Information & Deals
Depending on the finance company you choose, they make have in-house experts that specialize in construction equipment. Some will be able to advise you on the best machinery or tools for your needs. They may also have relationships with manufacturers in the construction industry which allows you to access the best deals. Combined with the other financial benefits of leasing, this can make the package a very enticing solution for business owners.
#5 – Avoid the Pitfalls of Obsolete Equipment
The rate of equipment innovation is incredibly fast which means that products can quickly become outdated or obsolete. If a manufacturer stops producing, supporting, or providing updates for a piece of machinery then it can cause huge issues for your business. If they stop holding spares parts then repairs will become almost impossible. However, this can often be avoided if you lease equipment instead of purchasing outright. Many leasing agreements enable equipment to be updated quickly and easily or traded in for brand new models. This reduces your risk and can be more cost-effective than repurchasing outright for a second time.
#6 – Improves Financial Planning Capabilities
If you lease construction equipment, then you’ll pay a fixed fee each month. This allows you to plan in advance based on a consistent outlay so that your figures aren’t fluctuating widely month to month. Instead of having a large expense upfront, you’ll make much smaller payments over the term. This makes planning and budgeting much easier and also has implications for tax too. Some types of leasing solution enable you to take depreciation, whereas others don’t but tend to have the lowest payment options. Approaching financing in this way allows you to plan ahead and choose the solution that’s best for your business needs.
#7 – Reduce Your Exposure To Risk
One theme that runs through several of these benefits is reducing your exposure to risk. Whether it’s from the equipment becoming obsolete to protecting your capital, many of these help to mitigate against potential risks. Construction equipment financing can shield your business from unexpected problems so that you’re able to concentrate on your core business activities.
#8 Hassle-Free Disposal Once You’re Done
Disposing of equipment isn’t something that most business owners consider but it can be a costly and unexpected addition. There are often strict rules about the disposal of heavy equipment, industrial machinery, and electrical tools. This means that you can’t just drop them off at your local dump – they’ll need to be disposed of following the correct procedures. The good news is that most equipment companies will agree to take care of this as part of the lease agreement, saving you money and hassle at the end of the term.
What Kind of Construction Equipment Can I Finance?
You can finance a wide range of vehicles, machinery, and tools including the following;
- Vehicles – bulldozers, dump trucks, forklifts, and excavators
- Computer Equipment – mobile computing, tablets, and cad software
- General Machine Equipment – CNC machinery, drill presses, compressors, concrete mixers and pumps, conveyors, milling machinery
- Tools – jackhammers, backhoes, pneumatic pipe benders, and welders
- Other equipment needs – such as worksite security systems
This list isn’t exhaustive so get in touch if you have other equipment needs that you’d like finance for.
Construction Equipment Financing – Summary
Construction financing can enable you to access the latest technology and improve your bottom line. By using more efficient and effective equipment you’ll be able to complete projects faster and to a higher standard too. The truth is that you don’t need to own the equipment outright in order to make money from it. So, financing could be a more cost-effective solution in both the short and long-term.
How We Can Help
Strategic Capital offers financing solutions, equipment loans, and lines of credit that support construction companies across the USA. We don’t require capital which means that your personal and business assets aren’t part of the credit approval equation. If you’re in need of short-term financing, then we can help. Whether it’s to pay for hiring more laborers, investing in expansion, or simply finance constructions, we offer financial services without the need for collateral. Best of all, you’ll benefit from competitive repayment terms and low interest rates, so you have more money to reinvest in your business.Transparency, innovation, and expertise are the driving factors behind everything we do. With a talented team of advisors, a plethora of funding partners, and the best technology available -we go above and beyond to help our clients receive their capital rapidly with the industry’s most competitive repayment options and interest rates. We want to break speed records, not bank accounts.Upon submitting your application, it’s reviewed by a dedicated Capital Advisor. We generate the best rates and terms at lightning speed through our funding matrix and robust lender network. Yep… it’s that simple. Learn more about our equipment financing options here.
– Bradley Keys
Checking for pre-approval will not affect your credit score.