These days, many construction companies are opting to lease their equipment instead of buying it, due to the advantages it offers, including flexible payment options and lower cost of ownership. In this article, we’ll take a look at the top three benefits of leasing the equipment for your construction business.
Lower Cost of Ownership
One of the greatest advantages to leasing your equipment is the lower total cost of ownership. Typically, when you purchase new equipment, you’ll have to put down a significant down payment and have high monthly payments. However, a lease agreement typically does not require a big down payment and they offer a variety of payment options to fit your personal needs.
The second advantage to leasing construction equipment is that it’s so much more flexible. In most cases, a company only needs a piece of equipment for a specific type of project and therefore, only needs it on a short-term basis. A lease agreement is flexible enough that you can choose terms that fit your budget and needs.
Typically, the monthly lease payment is much less than purchasing the equipment outright. This means that you’ll have better cash flow. When you purchase a piece of equipment outright, you’ll end up stuck with it, even when it’s no longer useful.
Allows for Used Equipment
When you are purchasing new equipment, there are certain types that have long waiting lists. This is when leasing something used is something you might want to consider. When you opt to lease used instead of buying new, you have more access to the equipment that you need and you don’t have to worry about losing a project because you have to wait for a certain piece of equipment.
In the end, there’s nothing that says you must lease or you must buy. The final decision depends upon your contracts and the situation you find yourself in financially. Therefore, it’s critical that you take the time to do your research before you jump right in. Be sure to contact JHF Capital to help guide you through the process of deciding which one is right for you.