Leasing Construction Equipment for Your Business
While no two construction jobs are exactly alike, almost all of them require the use of heavy machinery. Construction companies need different equipment for different jobs, and to try and purchase every type of apparatus would be insane. Leasing construction equipment is the only way some businesses are able to finish a project and maintain cash flow. If you’re deciding between buying and leasing a piece of machinery, here are some things to think about.
Don’t forget that there will be expenses beyond that big purchase. You’ll still need to get supplies, pay employees and potentially buy even more equipment. When you acquire something outright you’ll have to pay a lot of money upfront and this can severely limit your resources moving forward. By leasing construction equipment you can control your costs and still have full use of the instruments you need. You can also figure out terms that work in your favor should you don’t need the machinery beyond a short amount of time. It doesn’t make sense to buy a rig that will only be used for two months when you can lease it for that period and then be done with it.
The other benefit is avoiding the cost of maintenance. If you buy equipment, you’re taking responsibility for a whole new set of overhead fees in the form of upkeep. Leasing means you don’t have to worry about the repair costs and you’re able to trade the equipment in if it stops working properly. Your savings are now twofold: no large down payment for the equipment and no maintenance fees down the road.
Keep Your Equipment Current
If you buy something, you likely won’t have enough cash to upgrade it when a newer model becomes available. Leasing construction equipment allows you to do exactly that without incurring extra costs. Most leasing companies will allow for the terms of your financing to include trade-ins when newer models are released. If you aren’t sure you can afford to buy one machine outright, you certainly don’t have the capital to buy a second when the first one becomes obsolete. Leasing allows you to provide your business with the most popular equipment without overspending and using precious working capital.
There’s no way to get around your company’s need for expensive equipment; if you want to keep your customers happy you have to have the ability to provide the services they need. Leasing construction equipment enables your business to save money and access the machinery needed to do your job.