Construction companies typically need a wide variety of equipment which will be used to complete projects they undertake. That kind of equipment is rarely cheap, and that means you probably have to seek out financial assistance in order to acquire the equipment you need. Here are some tips that construction companies should observe when arranging for financing critical equipment.
Check on After-Sales Support
Not all manufacturers provide adequate sales support after the sale is made, and some provide none at all. When you’re considering the purchase of some critical equipment, make sure that you have adequate support, so that your equipment can retain its value for years.
It may not always be the best approach to purchase your new equipment outright. This is especially true if the equipment your purchasing tends to have a high rate of turnover, which would make it obsolete before you finished paying it off. Renting can be a very viable approach for acquiring the new equipment without actually taking ownership, and in some cases, this is very much to your advantage.
How About Leasing?
Leasing provides many of the benefits of either purchasing the equipment or renting it, but it will generally be at a lower repayment rate. If you desire to swap out your leased equipment at the end of the leasing period, you’ll be able to do that very easily. You’ll also have the option of walking away from the lease entirely and choosing some other option for the future.
Consider All Options
Sometimes it’s best for construction companies to avoid going back to the dealer you have worked with in years past and consider other dealers as well. It may very well be that your best option is with another dealer entirely, someone who can provide you with a much better package than anyone else.
When you’re considering the cost of equipment purchase, you should make sure not to overlook the total cost, which can include transportation expenses. For instance, if you were to bid on a project which is situated far away from your headquarters, it could be that transportation costs make it much less appealing because you will be responsible for the truck, the fuel, and the driver.
Need financing for your equipment?
If you are being held back from business growth because you lack the equipment which would help you get there, we may be able to provide financial assistance. Contact us at Avery James, so we can discuss some options with you for financing that critical piece of equipment you need.