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Get expert tips on equipment financing for construction businesses. Learn how to acquire machinery with affordable terms and keep projects moving forward.
Construction companies live and breathe by how much heavy machinery they can efficiently operate and deploy across different job sites and projects. But that equipment is also monstrously expensive to acquire all at once upfront.
That's where equipment financing through loans, leases and strategic procurement come into play. By structuring affordable payment plans to access tools like:
You drastically reduce the capital expenditure burden on your firm. Cash can be better allocated to labor, materials, overhead and other job costs to maintain profitability.
However, not all equipment financing deals are made equal. It's critical for construction companies to follow smart strategies versus rushing into unfavorable long-term agreements.
Here are 7 equipment financing tips to power up your approach:
Consider Total Cost of Ownership - Don't just look at purchase prices - factor in the long-term costs like maintenance, repair, fuel efficiency, training expenses, insurance and expected lifespan.
Understand the Tax Implication - Equipment leases may qualify for tax deductions for the full cost as an operating expense. Purchased equipment costs must be gradually deducted through depreciation.
Compare Lease vs Loan Options - Is it better to lease and return equipment or own eventually? Depends if you'll use for over 3 years and want to capture the equity long-term. Run the numbers to decide.
Match Equipment to Job Timelines - Only finance the equipment actually needed for the specific jobs you line up, not extras just sitting idle. Returns/subleasing unused equipment costs you.
Leverage Your Credit Profile - The stronger your business credit and financials, the better terms you can negotiate with lenders and leasing agencies. Maintain a solid profile.
Ask About Bundling Discounts - Can you bundle financing for an entire equipment set to get better rates and terms versus piecing everything out individually?
Pick a Construction Equipment Specialist - Work with a lender that understands the construction business and offers robust financing and procurement options tailored to your specific fleet needs.
While a major upfront investment, having the latest construction technology keeps you competitive on bids and more productive on job sites. Smart, carefully structured equipment financing empowers your company to affordably deploy those mission-critical assets.
Attention construction business owners: Don't let outdated or insufficient equipment slow your project progress. National Legacy Capital Group specializes in financing solutions for the construction industry, allowing you to acquire the machinery you need with affordable terms. Put our equipment financing tips into action by applying for funding at nationallegacy.com today.
