If heavy equipment is at the heart of everything you do, as it is in the construction industry, your business may benefit from a loan for more or better machinery. You might also consider financing your heavy equipment so that you can keep your working capital for other purposes such as hiring, buying computers or software, marketing your company to grow your profits, and more.
What Can I Finance with Heavy Equipment Financing?
You can finance construction machinery and specialized vehicles such as:
- Cement mixers.
- Skip loaders.
- And other big construction machinery.
- You may be able to finance equipment, plus related costs like installation expenses and freight costs. Ask your lender if they offer this option.
How Does Heavy Equipment Financing Work for Construction Companies?
There are two basic options for heavy construction equipment loans–financing and leasing:
Heavy Equipment Leases
No collateral or down payment is needed for equipment leasing. You make monthly lease payments, “renting” the heavy equipment for a specific length of time. Once the equipment lease is over, you can choose to renew your lease, return your heavy equipment, or buy the now-used equipment at its current market value. For equipment that is redesigned or updated often, heavy equipment leasing allows you to easily replace outdated or obsolete construction equipment, although this might be more expensive long-term. That expense, however, may be a worthwhile investment in your business growth.
Heavy Equipment Loans
In this arrangement, the lender provides you with the funding to purchase the equipment now. After you pay off the loan with monthly payments, you own the heavy equipment. The loan takes longer to pay off, but allows you to make an investment in equipment that you can keep using for many years to come. Since you use the item so often (and you won’t need to replace it with the latest model very soon) purchasing it outright with a loan can save you money long-term. The item becomes a tangible asset adding to your company value and may provide tax deductions for depreciation. (Consult your tax advisor.)
Get started on your bright business future today with heavy equipment financing from the experts. Contact Magis Funding now.