The Basics of Equipment FinancingMay 27, 2018
Why Credit MattersAugust 31, 2018
Do you own a construction company? If so, you might want to know that more of your competition is choosing to lease equipment instead of buy. With lower ownership costs and greater payment flexibility, leasing is a viable option for expensive construction equipment. Here are three unique advantages to leasing your construction equipment instead of buying it. Here are three benefits of leasing your contruction equipment from Yellowhead.
Reduced ownership costs.
Buying new equipment requires a massive down payment or expensive monthly payment installments, but lease agreements rarely require down payments. Additionally, leasing companies typically provide more flexible payment options, allowing you to customize your payments.
Leasing provides lower monthly payments than typically loan style financing. Pair this with a zero dollar down payment, and you begin to see how this frees up your cash flow. In turn, you can add or move off balance sheets to monthly expenses instead. This creates tax advantages as well. Not only that, but with your construction company on the go, a short-term basis lease might be the best option for your budget. Additionally, flexibility with your equipment is also necessary. Getting stuck with obsolete equipment can hurt your business. But leasing prevents that risk.
Faster access to equipment
Many construction equipment manufacturers are backlogged. Leasing allows you access to the construction equipment you need when you need it. No waiting for the equipment to become available. Simply request the equipment you need and be on your way.
Summing it Up
Depending on the unique situation of your business, there is no right or wrong decision for your needs. Your financial situation and business requirements will ultimately determine whether leasing or buying your construction equipment is the best move. The best way to decide is to do your own research. Educate yourself regarding each option and decide if cash flow is more important than a long-term financial decision. Regardless of your business size, leasing presents a viable option, so think long and hard before taking out a loan for construction equipment.