If you have a construction business, you need equipment to run it. Since the construction industry is so equipment intensive, you are likely to need a wide variety from compact to heavy. You’ll also need equipment to run the office side of your business as well. You’ll need some way to pay for this equipment, and you’ve decided to consider financing as an option.
In this article, we’ll look at 10 reasons why equipment financing might be your best option.
Equipment financing is usually pretty flexible and can be tailored to fit the cash flow needs of your company.
Most businesses consider preservation of capital as one of their priorities, which makes financing of your equipment quite attractive.
Improvement in Expense Planning
Cash flow and budgeting should be considered when deciding whether to purchase equipment outright or finance it. When you finance it, you can manage your cash flow a little better.
Flexible Based on Business Cycle
As mentioned earlier, financing is a flexible option for construction companies. It can even be flexible enough that payments can be made around your business cycle schedule. If a piece of equipment is not yet generating revenue, you can put the payments off.
These days, it’s critical that you have modern equipment available to you. Most businesses simply can’t keep purchasing new equipment every time a piece becomes obsolete. However, with construction equipment financing, you can get new equipment as needed.
Access to Experts
There are some companies that are experts when it comes to their equipment and can answer any questions you might have. Of course, this is not true with all equipment financing companies.
When you use lease financing, you can avoid having equipment that is obsolete. As mentioned earlier, it’s critical that you always have modern equipment available to you.
Dependable Management of Assets
Many financing companies offer management of assets, meaning they can keep track of your equipment and whether or not it is being used properly.
Disposal of Equipment
If you are financing your equipment, you don’t have to worry about disposing of it once it is no longer needed or working. The financing company will take care of it.
Reduction in Risk
All of the above equal a reduction in risk for you and your business. If you get with the right financing company, you’ll be taken care of from start to finish.
Contact Growth Capital Team today to learn more about our financing options for construction equipment.