It can be an overwhelming experience to start or grow a construction company.
You’ll need to plan out not only what kind of equipment to buy but also how to pay for it in order to choose the right path. Do you have the cash to pay, or will you need to finance the construction equipment? Is refurbished or used equipment more cost-effective than brand-new equipment?
It’s not uncommon to be unable to pay cash, so the best option is frequently to contact a construction equipment finance company. When looking into equipment financing, it’s important to know exactly what your business needs and how your cash flow will allow you to pay for it.
Find Out What Kind of Equipment You Need Your construction equipment finance company will need to know exactly what kind of equipment you want to buy because the terms of the financing will be tailored to meet your needs. Financing options will vary depending on the kind of equipment. For instance, the finance company may offer shorter-term financing if you intend to upgrade your computer system, as computer equipment quickly becomes obsolete. It’s possible that purchasing a bulldozer or cement truck will have a much longer lifespan and qualify for financing for a longer period of time.
After deciding how much equipment to buy, the brand you want or need, how much your budget can handle, etc., think about used or refurbished equipment. The next step is to choose between purchasing brand-new or used equipment. If the primary purpose is to serve as a back-up to your existing construction equipment and is not intended for daily use, used or refurbished equipment may be the best option. If you intend to use used construction equipment as your primary tool, not all of them will be reliable enough. You should conduct thorough research on your proposed used equipment purchase, just as you would on the advantages and disadvantages of purchasing a used car.
It’s time to start looking into financing companies now that you know what you want or need and have chosen between new or refurbished options. The bank that manages your business checking account is a good place to start. Even though they might not have the most appealing financing options, they might be a good way to compare to a company that specializes in financing construction equipment.
An equipment financing company will be more knowledgeable about your specific business and equipment requirements than a commercial bank because it is all they do. Look for a business that has its own underwriting department because they can respond to your request for equipment financing more quickly than if the application had to be sent outside the department for review. As a result, you will receive financing more quickly and your new equipment will arrive sooner than expected.
Equipment leasing is another option frequently offered by equipment financing companies if you are unable to purchase new or refurbished equipment. If you’re starting a seasonal business or want to take advantage of tax breaks, this is a great option. Look to a construction equipment finance company if you’re worried about tying up liquid assets as you start or grow your current fleet of construction equipment. They have the expertise and experience to assist you in making the best financial decisions for you.
