Construction projects are complex, take a lot of time and require input from a large number of parties and require very careful management of resources of all kinds including human, financial, supplies and equipment. From the initial permitting and planning stages through to the final punch card walk throughs and moving the new owners or tenants in there is a huge amount of work and coordination that goes into the process from start to finish.
In order for the process to start and remain profitable for the construction company they have to carefully ensure a balance between completing the work required while getting paid themselves and paying out the various subcontractors and other parties involved in the process. Sometimes cash can get tight. Sometimes it can become uncomfortably tight. This is where construction equipment leasing can be a huge asset to companies who know how to take advantage of it private blog network
Because the needs of the work ebb and flow and the demands for equipment are hard to forecast ownership doesn’t always make the most sense. It may also not be feasible to put down twenty or twenty five percent of the equipment cost and have that money tied up in machinery that isn’t getting used all the time and also have to pay for the entire value of the equipment when you may only need it for a short term.
Construction equipment leasing can solve these problems by offering a way to pay only for the value of the equipment that will be used and freeing up cash by not requiring a large down payment while at the same time not impacting existing credit lines.
There are a lot of factors that go into the decision to lease or buy but knowing that you at least have the option to lease and understanding the impact of using a lease to obtain equipment can certainly open up the possibilities.
One factor to consider with leasing is the ability to maximize tax advantages immediately versus a longer term depreciation schedule. Another factor is the way some leasing program can be structured with flexible payments to allow the timing of income to match the timing of lease installments rather than having to meet a monthly obligation that is the same high number each month regardless of the ups and downs of the business revenues.
The bottom line on construction equipment leasing is that while it certainly won’t make sense for every situation or project it is also true that there will be many instances where it will be the more favorable option. When that happens you will want to feel comfortable and secure knowing you have a reputable and qualified lease specialist to turn to for a quote and the options available from various funding sources who can help you rapidly deploy the equipment you need with the lowest possible outlay of cash and the most flexible and advantageous terms available to match your business specific requirements. If you find yourself in that situation or even if you just want to explore the options we are available to give you those choices for your consideration.