How Equipment Financing Helps Construction Contractors

When you work in construction, you rely on your equipment to keep each job on schedule and ready for completion by the target date. When that equipment breaks or is so old that it needs replacing, paying the full purchase price upfront isn’t always an option. After all, you have tons of financial responsibilities to manage with your business, so how can you make sure you get the equipment you need? Equipment financing can help. Here are a few great ways that financing those purchases can help contractors.

Breaks Payments Up

When you buy equipment outright, you have to pay the full price upfront. If you’ve been saving for months to invest your money in new equipment, this isn’t a problem. However, if you haven’t, it puts strain on your budget. When you finance your new equipment, you’re able to break the purchase price up into smaller payments each month. This helps you stay on budget without having to rely on outdated equipment to get your jobs done.

Gives You Access To Equipment Immediately

When you finance equipment, you don’t have to wait to take possession of the new tools. You get them immediately after the lender sends the money to the equipment dealer. This means you gain access to your new equipment right away. You won’t have to wait to start using it until you pay off the balance in full. For companies that work on tight deadlines, this immediate access is absolutely essential.

Lets You Sell It in the Future

Though many construction crews lease the equipment they use, it’s not always the best idea. When you lease the tools and gear you need, you never own it outright even if you end up paying the full purchase price over the course of your lease agreement. This means you can’t build equity in the equipment over time. Your money just goes to the leasing company. When you finance the purchase with an equipment loan, you build equity in the equipment as soon as you make your first payment. Once you pay the loan off in full, you’re able to sell the equipment and recoup a portion of the original purchase price. Even better, you’ll keep the money you make off the sale and can use it to buy a newer version of the equipment you need.

Equipment financing is a great way for construction crews to gain access to the tools and equipment they need to work safely. Over time, you’ll own the equipment outright and you’ll do it without having to spend thousands of dollars upfront.

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