Do you need new equipment for your construction business but don’t have enough cash? Heavy construction equipment and machines are expensive and most businesses in this industry lack resources to purchase all the required tools and equipment. Buying new construction equipment can be a big investment, especially for small and medium-sized businesses. Whether you need excavators, tractors, wheel loaders, or any other machine, you have multiple options to get access to the required equipment. Every business has unique needs and different ways of running the company. So, when you need to acquire construction equipment for your company, you typically have three options available- buy, rent, or lease. Unless you have a big business with a lot of resources, buying heavy machinery isn’t the best option. Construction equipment and tools are not only expensive but also costly to maintain. Moreover, once you invest in a piece of machinery, soon a new version comes out and your purchased machine becomes obsolete and low-grade. So, what’s the best option?
Buying and maintaining construction equipment involves high costs. To avoid this expense, most businesses are opting for a lease. Leasing has become a popular choice of businesses because it allows them to get access to the needed equipment for a fixed time frame. It means that you don’t own the equipment and don’t even need to worry about the machine getting obsolete. Now, let’s find out more about leasing to know why it’s the best option for construction companies.
What is Equipment Leasing?
Leasing doesn’t involve buying the equipment. It gives you access to use the equipment for a fixed period in exchange for a monthly payment. Equipment leasing is similar to renting the equipment rather than purchasing it. Businesses can lease the machine or vehicle for a specific period and once the contract expires, the equipment is returned or the business may choose to renew the lease. Leasing doesn’t give you ownership of the equipment and it is not the same as equipment financing where you take a loan and become the owner of the equipment once you pay off the loan. Now, if you’re confused about whether you should buy or lease heavy equipment, consider some amazing benefits of leasing construction equipment.
Benefits of Leasing Construction Equipment
Construction is a capital-intensive industry and companies need a lot of cash to stay afloat. Purchasing costly equipment can drain their finances and some cash-strapped small businesses can’t even think about investing in new machinery. This is where leasing allows businesses to get the necessary equipment without worrying about the high upfront cost. Here are some more benefits of leasing construction equipment.
- Project-Specific Equipment
Some projects need special equipment that you might not need for other projects. Investing in equipment and vehicles needed for a few projects can waste your precious resources. This is where leasing helps in getting access to specific machinery for a limited time. Buying equipment needed for a shorter duration means you need to store and maintain it even when you no longer need it.
- Access to Latest Technology
The technology keeps improving and more advanced equipment and machines are introduced every other year. The expensive machine you purchased for thousands of dollars may become outdated when a new technology is launched. Leasing equipment allows businesses to get access to the latest machines available in the market without spending a lot of money. Moreover, you don’t have to worry about the depreciation cost.
- Better Cash Flow
Buying brand new construction equipment can disturb your company’s budget. Leasing allows you to get the needed machinery at a lower cost and improve the cash flow of your business. Also, leasing is available for flexible and lower payments than a traditional loan.
