3 Ways to Find Success with Equipment Financing
Owning and operating a construction business can be a costly affair, especially when that business is still in its infancy. One of the most expensive aspects includes the purchase and upkeep of your equipment. One surefire way to lessen the financial impact and expand your company quickly is to lease equipment instead. Here are three reasons how equipment financing can help you surpass your business goals.
Increased Flexibility
There is nothing worse than starting a new contract and discovering you need specialized equipment, except knowing that you will have no use for that machinery once the job is finished. Equipment financing allows you to be much more versatile in the jobs you take, since you can have access to equipment on a short term basis instead of investing in something that will spend the majority of its time taking up space in your warehouse. Once the job is done, you can simply return it in good condition to have your initial deposit refunded. Your business can take on more contracts that it could if you limited yourself to only taking on contracts based upon hardware you own.
Financial Security
One of the biggest hurdles any company faces is finding initial or continued finances. Bank loans can be costly with high interest rates and additional fees, and credit checks are a hassle most owners wish to avoid. Once the equipment is purchased, further expenses including maintenance and vehicle taxes become a constant challenge to overcome. This is where financing comes into play.
Being new to the industry almost guarantees bad credit, and if a company has faced difficulties before, then taking on more credit may be a rist best avoided. Some leasing agreements forego credit check from the outset, and if it is factored in to the final transaction then it’s usually not as important as proving your ability to make lease payments initially.
Revolving Inventory
Perhaps the best aspect of equipment financing comes with a constant access to new and updated machinery. Purchasing used or even new equipment outright promises a long-term investment in those pieces. You take on maintenance responsibilities, and are forced to utilize those same machines for years to come. By leasing, you have the freedom to change your equipment inventory when a new, more useful model hits the market, or change brands for ones you discover are more reliable or efficient. Your don’t have to let initial decisions determine whether your company will be a success; financing can ensure you have access to the best equipment when you need it.
