Operating a construction company can become expensive, especially when it’s time to buy new equipment. As the weather starts to warm up across the country, many construction companies will begin to take on more jobs. And many of these jobs require equipment that companies don’t have. Although there are options to choose to get new equipment, it’s important that you are making the best equipment financing decisions.
When you need equipment for a new job, one option you can choose is to lease used equipment. Below, we explain why leasing used equipment can improve your company’s cash flow.
Equipment leasing offers companies flexibility. The flexibility of a lease allows companies to lessen their monthly bills, gives them the option to extend payments and ultimately allows them to focus their cash flow on other areas of their operations.
There are many benefits to leasing equipment. Below, we provide some of the top advantages:
No guess about the quality of machinery
A wider selection of machinery
History of repairs and services
Get the latest technology
When obtaining new equipment, leasing is not always the best option. However, there are many situations where it is a top option. Here are some things to consider as you think about leasing equipment:
When considering leasing equipment, the first thing you should look at is your utilization rate. How long will you be using the equipment? What jobs are you using the equipment for? If you come to the conclusion that you will need a certain piece of equipment for a variety of jobs over a long period of time, purchasing a new or used model is probably the best option. On the flip side, however, if you only need a certain piece of equipment for a job or two, on a short-term scale, then leasing that equipment is a great option.
Are you planning on growing your business in the short term? Or are you looking to grow over the next few years? How you plan to grow your business is something else you should consider when looking into equipment acquisition options.
If you plan on growing your business in the short term, renting or leasing equipment is one of your best options. Leasing allows companies to keep their owning and operating costs predictable while taking on more jobs.
Companies who already have steady equipment needs, predictable machine applications and the resources to store and transport their equipment may want to consider purchasing either used or new equipment rather than leasing. This allows for much more flexibility down the road.
Ultimately, a business’ acquisition strategies will change over time. However, it’s important to evaluate your current growth plans when looking at your best equipment financing options.
When it is time to update your equipment or find the best equipment financing options, contact our team today. We look forward to helping you grow!