How Construction Companies can Finance Heavy Equipment
Your construction company requires the latest heavy equipment to stay ahead of the competition. If you’re looking for ways to grow your business without draining your working capital, find out how to select the best equipment financing available today.
Gather Financial Data
How much can you invest in new equipment? Before seeking financing, it’s essential to gather the necessary financial data to apply for a loan and determine the monthly payment and down payment you’re capable of making.
Many equipment loans allow you to begin working immediately without a down payment. A 0% down loan keeps your working capital flexible, so you can make timely payroll payments and invest in inventory for your newest projects.
Compare Financing Options
Equipment financing is available in two basic categories: equipment loans and equipment leases. A lease offers you a short-term contract where you can use your equipment at a reasonable monthly rate. Once the lease is over, however, you must either return your construction equipment, renew your lease or purchase the equipment at a discounted rate.
A loan, on the other hand, is a way to purchase equipment. After making monthly payments for the duration of the loan, you’ll own your equipment outright and have the opportunity to continue to use your equipment or sell it at a profit.
Select the Ideal Heavy Equipment
Your lease or loan is tied to the specific equipment you’re intending on using, so be sure to shop for the best brand and model of construction equipment for the job. Look for a cost-effective option or invest in the latest model with a reasonable loan. Gain access to the latest equipment with little or no money down to start your company off with premier efficiency and productivity.
Understand Your Loan
Carefully compare each loan type to find the best rates. Because of the popularity of construction equipment loans, there are many options available to you. Receive a quote from several companies and ask about any additional fees associated with your financing. If you’re considering an equipment lease, ask about your options for purchasing, updating or returning your equipment when the lease is over.
Upgrade to the latest heavy equipment or create a dynamic construction startup with equipment loans. Discuss your options with a bank or other financial institution to determine the best financial option for you. Review your financial history can receive a reasonable monthly payment plan that fits your budget.
