Why You Should Lease Heavy Equipment 

Whether you are an independent construction contractor or recently started your own construction company, one important decision you will have to make is how to acquire the heavy equipment you will need. You have several choices, from buying it outright to renting individual pieces as you need them. However, choosing to lease heavy equipment is a highly viable option for small or new businesses, and there are several reasons why you should consider doing so.

When you lease heavy equipment, the money you save will allow you to build a cash reserve and working capital for your business. You may think that leasing is the same as renting; however, there are several differences. When you rent equipment, it is typically on a short-term basis and you will have to pay fees each time you need it again. This means you will always have to set some money aside for these fees, along with the base cost of the rental. When you lease equipment, you get to keep the equipment on hand for an agreed-upon amount of time and pay a flat monthly fee. This eliminates rental fees and the money it costs to fetch and transport heavy equipment each time you need it. As a result, your cash reserves will grow faster.

Companies that lease heavy equipment also sometimes allow for flexible terms so that you can budget more effectively. Rental fees are often changeable, which makes it difficult to forecast what kind of funding you will need for it. However, when you lease, you can let the leasing company know when you expect projects to slow so they can lower or stop payments completely during those times. This will help you avoid late fees and save money during the winter so that you have a healthy cash reserve by the time operations start up again in spring.

One of the greatest advantages to leasing heavy equipment is that you usually have the option to buy it once the lease is up. For example, if your business has experienced rapid growth during the time you lease the equipment, you can purchase it outright and your employees will already be familiar with its operation. This will eliminate the need for training on new equipment and allow your team to complete projects faster.

Before you choose to lease heavy equipment, consider the needs of your company. Since no two businesses are the same, it is important to project how leasing will affect both your short and long-term financial goals.


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