Having the right tools can make or break your business. If you need construction equipment, but can’t find the funds to afford it, why not finance it? Financing equipment is a great way to afford pre-owned or new equipment without having to scrounge up loose change. Here are a few questions to keep in mind before taking the plunge to finance construction equipment.
1. Should You Buy Or Lease?
Though you might want to be the sole owner of your business’ construction equipment, it’s actually more feasible to take out a loan. It’s better to have it and use it, than it is to own it.
2. Can You Afford It?
Financing construction equipment can generate more revenue that exceeds your monthly payments. Often times, no down payment is needed for you to start using equipment, which leaves more money in your pockets. These loans are also flexible, which can be good seasonally when business might not be as consistent.
3. Do You Have Credit Available?
Good credit is a vehicle for business functionality; without it, you will not receive good loan repayment options.
4. Is Your Equipment Obsolete?
Technology is ever-changing, and the same principle applies to construction equipment. If you’re forking over thousands of dollars for new, trendy equipment, you might be wasting money without knowing it. Instead of spending thousands all at once, financing can lend you more forgiving options, so you’re not stuck with technology or equipment that becomes obsolete and irrelevant.
5. Is Your Business’ Budget Limited?
Most businesses have a limited amount available for investment. If your business’ budget isn’t limited, there’s a chance you can use your capital budget for other business avenues.