When I started working with my Uncle Bob last summer, I assumed that construction would be an easy, fun way to make a few extra bucks. However, I quickly discovered that construction work was serious business, filled with risks, difficulty, and rewards. After almost being creamed by a few backhoe booms, I learned how to stay out of the way. However, staying safe around heavy machinery isn't always easy to do. My blog talks about how to use machinery properly and what you need to do to stay safe so that you can return home to your family each and every day.
If your construction business needs some additional equipment, instead of purchasing that equipment outright, you can lease the equipment. There are specific benefits that come with leasing equipment instead of purchasing it outright.
#1 Keep Your Cash Flowing
A lease is a great way to keep your cash flowing. When you lease construction equipment instead of purchasing it, you are paying for the right to use the equipment and you are paying for the wear and tear that you put on the equipment. You are not paying the entire cost of the equipment like you would if you purchased the equipment; you are just paying to use the equipment.
With a lease, you generally don't have to pay as much as you would if you took out a loan to purchase new equipment. With a lease, your payments are much lower, and it provides you with a great level of cash flow.
#2 Benefit from Adjustable Payments
Many equipment leasing companies are willing to work with you on your payment plan. Construction historically has slow seasons, and many leasing companies offer some sort of payment relief during the slow season, making it more affordable for you to lease construction equipment over the long-term, even when business is not popping.
When you set-up the lease, see if the payments can be structured so that you are paying more during your busy months and less during your slow season. It is best to set-up this arrangement in advance so that you and the leasing agent are on the same team.
#3 Access to Modern Equipment
When you purchase construction equipment, you are often stuck with the equipment for years to come. When you lease equipment, you only have to keep the equipment for the terms of the lease. You can renew the lease and keep the equipment, or you can turn the equipment in and get new equipment. When you lease equipment, you are able to more frequently upgrade your equipment and take advantage of new and modern equipment.
If you need some new equipment for your construction business, you should consider leasing instead of buying new equipment. Leasing equipment will free up your cash flow, allow you access to modern machines, and allow you flexible payment options that work with your income flow and needs. If you need to purchase a compact grinder, a dump truck, a tractor, or other equipment for your construction business, consider leasing it instead of outright purchasing it.