Financing Construction Equipment

If you are starting a construction company or looking to update old construction equipment, financing may be the best option for you. With construction equipment costs ranging from $20k upwards of $150k, possibly even higher, it can become a huge financing burden trying to make these purchases out of pocket. Financing construction equipment allows you to make monthly payments that suits your business’s financial budget and not depleting your businesses savings.

What is Financing for Construction Equipment?

Financing for construction equipment can be done through a lease or a loan. Each option holds its own benefits to your business, allow you to make monthly payments rather than a large upfront purchase.

Construction Equipment Leasing

Construction Equipment Leasing is essentially renting the equipment for 2 to 4 years, whichever term you choose. Because you are not buying the equipment your payments will be lower than it would be for a loan. The lease can also be written off in your business taxes, saving you more money in the long run. At the end of the lease term you can either purchase the equipment outright or turn it in and begin a new lease for new up to date equipment.

Construction Equipment Loan

A construction equipment loan puts you in ownership of the equipment, however during the loan term there is a lean held on the equipment. A construction equipment loan can range from as little as 2 years to as long as 7 years depending on your businesses needs. Interest rate is determined by the business and owners personal credit rating. At the end of the loan term your business will have acquired an asset that can be used as collateral for future financing needs.

Which Financing Option is Best for my Construction Company?

When determining whether a lease or loan is the best financing option for your company there are many key factors. The frequency you choose to update equipment, your business’s current financial situation, and the size of your business where writing a lease payment off may help you come tax time. Sitting down with a lender will help you to make the best decision for your company and help you to get the construction equipment you need to run your business efficiently and safely.

 

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  • Unsecured Loans up to $150,000
  • Save Money - The Lowest Rates in the industry
  • Funding is Fast - Less than Seven Days Turnaround
  • Versatile - Multiple Industries Funded