For construction companies and contractors, having the right heavy equipment like excavators, bulldozers, cranes and more is critical to winning bids and delivering quality workmanship on projects. But that equipment is also a massive capital expense that ties up precious cash flow if you outright purchase it all.

That's where equipment financing comes in. By taking out equipment loans or leasing the machinery instead of buying, you can access the resources needed to take on new jobs without draining your working capital. Smart equipment financing frees up funds for labor, materials, overhead and other vital project costs.

There are two main types of equipment financing for construction firms to consider:

Equipment Loans

With an equipment loan, you are borrowing the full cost of the machinery upfront and then own it outright after completing all the scheduled payments, similar to an auto loan. Equipment loans tend to have fixed interest rates over terms ranging from 2-7 years typically.

Equipment Leasing

Leasing equipment gives you access to use it for a monthly payment without the large upfront costs. At the end of the lease term, you can return the equipment, renew the lease, or purchase it at fair market value. Construction companies often prefer leasing for the tax advantages.

Beyond these broad categories, there are many variations in loan and lease structures, rates, buyout options and more. An experienced equipment financing partner will work closely with your construction firm to identify the right solutions for the machinery you need.

Sound equipment financing practices can also enhance your bottom line on jobs. For starters, having the latest equipment technology helps drive productivity and output. It's also essential to calculate the total cost of ownership, not just sticker price, by analyzing:

• Maintenance/Repair costs
• Fuel efficiency
• Expected operational lifespan
• Interest or lease charges

By comparing financing offers and true equipment costs, you ensure the assets don't become profit drains. Top equipment financing companies provide consultation and flexible options to find the right long-term fit.

While heavy equipment represents a major investment, it also allows construction firms to construct their own success. With smart, affordable equipment financing, you can pursue more projects, reduce financial risk and maintain the cash flow for growth.

Contractors and construction firms, don't let a lack of equipment hold you back from taking on new projects. National Legacy Capital Group offers tailored equipment financing solutions that allow you to acquire the machinery you need without tying up valuable capital. Visit nationallegacy.com to learn more and apply for funding that keeps your business building.

Contractors and construction firms, don't let a lack of equipment hold you back from taking on new projects. National Legacy Capital Group offers tailored equipment financing solutions that allow you to acquire the machinery you need without tying up valuable capital. Visit nationallegacy.com to learn more and apply for funding that keeps your business building.

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