Nothing is worse than trying to do a job with old and outdated equipment.
If your construction equipment is constantly breaking down and ends up spending more time in the shop than in service, it may be time to seriously consider leasing construction equipment.
It’s difficult to stay on budget and meet project deadlines when you can’t rely on your equipment. Not only do unexpected repairs cut into a company’s profitability, they can also quickly drain operating capital and eat away at the bottom line.
Because of reasons like these, more and more companies are choosing to lease equipment instead of purchasing it. What’s more, though the cost of ownership may be cheaper in the short-term, leasing construction equipment does offer some distinct advantages
Lease Construction Equipment–The Top Reasons To Consider It
1) Eliminate Large Cash Outlays: When a company chooses to lease equipment it frees up cash and capital and allows these funds to be leveraged toward other investments.
2) Frees Up Lines of Credit: In most cases, a lender will not freeze up lines of credit when equipment is being leased. This is not the case when you finance equipment.
3) Easier Terms and Faster Approval: Shorter application review times and a less stringent qualification process make leasing far more convenient than a traditional bank loan
4) Significant Tax Savings: A company that decides to lease equipment can often have the full cost of leasing treated as an expense. This often results in a larger tax deduction that standard equipment depreciation deductions. Of course, a tax professional should be consulted to determine the best tax saving strategy based on your specific business.
Lease Construction Equipment-The Most Common Machinery Used
Every imaginable piece of equipment is available for leasing from bulldozers and cranes to fork lifts and jack hammers. Here are some of the most common types of construction equipment companies use:
- Trucks and Tractors
- Backhoes and Bulldozers
- Cement Trucks
- Pavers and Rollers
- Loaders and Graders
- Cranes
- Excavators and Compactors
- Surveying Equipment
- Fork Lifts
- Jack Hammers
- Crawlers
- Dump Trucks
- Trailers
Of course, every company must carefully weigh the pros and cons whenever making a purchasing vs. leasing decision. Begin by reviewing the key factors listed above when you begin considering whether leasing construction equipment is right for your business.
Not only will leasing construction equipment allow you to use state-of-the-art equipment, it will also help you to grow your business while reserving your cash and protecting your lines of credit.
