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6
Jan

5 Benefits Of Leasing Construction Equipment

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Leasing equipment seems to be the way more construction companies are going, and there is a good reason why.

5 Reasons It’s Better To Lease Construction Equipment Than To Buy It

Total ownership cost is less

Leasing equipment does wonders for cash flow. There is no need for a sizeable down payment, as is the case when buying equipment. Down payments are rarely asked for with lease agreements and monthly payments are more manageable, and that is a bonus for any construction company. And any equipment you’re leasing can be taken off your assets list and moved onto a balance sheet as a monthly expense. This will be quite helpful come tax time.

The flexibility factor

There may be times you’ll need a piece of equipment just for one particular job, so buying something that you may not get full use out of really doesn’t make sense. A lease agreement can provide you with choices – you can choose a term that aligns with your budget and job needs. You might also choose to get a different piece of equipment within that lease term if you find you no longer need the piece you’ve leased. You wouldn’t have that luxury if you bought the piece.

Leasing can help you get a piece of equipment faster

Some pieces of equipment seem to be more in demand than others when being purchased new. If leasing used is something you’re open to, you may be able to secure more popular pieces of equipment faster.

Managing inventory

If you’re mechanically inclined and can take care of the maintenance of heavy equipment along with insurance costs, purchasing might be the right option. However, if, like many construction company owners, you don’t have those skills, leasing is the perfect solution to help you manage equipment.

Build on working capital

Leasing allows you to not only keep your capital, but to build on it. You can simply finance a piece of equipment with a monthly payment that suits your budget. Operational expenses will also be lessened through leasing.

There is no right or wrong answer when it comes to buying versus leasing. Companies need to look at their own situations before making the choice.

For help in making the right decision for your company, speak to a professional at Truck Loan Center. They will be able to answer all your questions regarding leasing versus buying heavy equipment.

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