Discover the benefits of leasing equipment
Equipment leasing is one way to acquire items without having to take the upfront hit to your cash flow. Rather than put a potentially large purchase against your existing capital—and put yourself in debt—leasing construction equipment offers you the ability to have the same equipment at a low monthly fee for a fixed number of months. At the end of the term, there's usually an option to buy the equipment with a one-time payment of the remaining market value of the item. Leasing equipment can help you avoid the big expenses involved in purchasing heavy construction machinery and vehicles, but office equipment leasing can also help you properly set up the business base of your company.
How to Apply for a Lease
To be eligible for a lease, you'll have to apply to an equipment leasing company; you can approach one directly, but often, merchants are already affiliated with one or more leasing companies, and when you buy through them, the lease is set up automatically with the retailer's affiliate. A lease company is typically more willing than a bank to approve an application, but they also tend to charge higher rates, so there is a bit of a trade-off. Leases up to $100,000 are considered small-ticket leases and are approved quickly; leases for amounts higher than $100,000 are subject to more intense scrutiny and require a thorough credit analysis. There are plenty of opportunities to find business equipment leasing that is perfect for construction companies, and while the leasing company associated with the merchant you wish to purchase from should be competitive, it's never a bad idea to shop around for more rates before you commit.
Once your application is approved, you can lease your equipment for a certain number of months, with the option to buy at the end of the contract. Not only do leases help delay the initial costs of outfitting a construction business with essential equipment such as dump trucks and cranes, but they often cover service calls and training, as well, so that you will know how to make the most of your new lease equipment. If a piece of equipment breaks down from normal use, it will usually be repaired or replaced by the leasing company.
Heavy construction equipment leasing brings a lot of peace of mind for most construction business owners by reducing upfront costs as well as maintenance or repair costs. Not only that, but you can often continue your lease indefinitely while swapping out the old technology for something newer; this can be especially enticing if you lease network equipment or other computer technology that becomes outdated within a few short years. Leasing makes sense on many levels for businesses that need to both control their spending and have access to the equipment they use to do business each day.