Consider Leasing Your Construction Equipment June 17, 2008
Posted by janey in : lease finance , trackbackAs your construction business expands, you may find that it is necessary to improve your existing equipment, or add to your fleet, in order to be able to accommodate more jobs, or expand your services.
Choosing to lease that equipment, instead of purchasing it outright, is often a smart business move.
Often when you finance your construction equipment through a bank or broker, you will have to have a large down payment.
With leasing, however, the required down payment is usually significantly lower, and the terms and conditions of a lease may be more favorable than those associated with a loan or purchase.
Many leases also offer fixed payment terms that can insulate your business from many of the economic changes that banks have to take into consideration when adjusting interest rates and finance charges.
Some other important leasing considerations include:
* conservation of operating capital
* meeting budget demands more easily
* saving credit lines and loans for emergency or other high demand situations
* keeping up with technology.
While you should always obtain advice from your accounting professional, you may also find there is a substantial benefit to leasing construction equipment when it is time to file your taxes.
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