Tag Archives: equipment leasing

When and How to Get Construction Equipment Leasing

June 24, 2020   Auto Loans

Construction Equipment Leasing is a type of leasing arrangement where a small business owner (like you) would like to get Construction Equipment but at a lower cost than when you buy the Construction Equipment yourself. It falls under the broader category of Equipment Leasing which means that the equipment you want to lease is probably very expensive (and Construction Equipment are extremely expensive) but you cannot rationalize buying the equipment because you might need the equipment only for the short-term or you lack the capital for outright purchases.

The usual lease period for Construction Equipment Leasing starts at the 24-month term and could last as long as a 48-month term. Usually, Construction Equipment Leasing will not require you to make a hefty down payment though you may be required to give a security deposit of some amount. This allows you to use more of your cash flow for your business needs and to save up. However, for long-term purposes, it is not advisable to use the Construction Equipment Leasing option – rather, a cheaper option for the long-term loan option is bank financing itself. Construction Equipment Leasing is ideal for short-term needs only.

Construction Equipment Leasing may fall into three main categories – namely the capital lease, the operating lease, or the skip lease. The capital lease (also called a finance lease) acts like a regular loan and will last about as long as the actual lifespan of the Construction Equipment. If the Construction Equipment is in good working condition at the end of this lease term, the capital lease allows you to take advantage of the stipulation to buy the same Construction Equipment you have been using for your company. The operating lease (also called a true lease) lasts shorter than the life span of the Construction Equipment and will usually use up less of your business cash flow. You may find payments for the operating lease to be tax deductible (but you’ll have to check the agreement you are entering if this applies to you.) A skip lease is ideal for any seasonal business where income usually flows in only during specific months in the year (rather than year-round like other businesses.)

When it comes to Construction Equipment Leasing, you may get yourself a better deal if you go straight to the Construction Equipment manufacturers. The larger business finance institutions are also known to do this more commonly than the smaller ones. The best way to find this option is to go online and look for any links to “leasing options.” As with any financial transaction, do not snatch up the first offer you get. Rather, try to look around the market and see if there are any Construction Equipment Leasing companies that can give you a better deal under the same leasing terms. It is equally important to find out if you are in for any tax breaks if you pursue Construction Equipment Leasing for your company. This can be confirmed by your company accountant.

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How to Go About Dump Truck Equipment Leasing

May 10, 2020   Auto Loans

Dump Truck Equipment Leasing may fall under the more general leasing category of Heavy Equipment Leasing (meaning, dump trucks are classified as heavy equipment like bulldozers, backhoes, and excavators) or Commercial Equipment Leasing. The numbers show that more than $3 billion in construction equipment (like dump trucks) are leased annually by US companies alone. Why pursue Dump Truck Equipment Leasing?

Some companies opt for Dump Truck Equipment Leasing because they are trying to expand the business and need their existing cash flow for this. Others may choose Dump Truck Equipment Leasing because their existing equipment suddenly failed to function (due perhaps to old age or defects) so they need functional equipment quickly to keep operating. Dump Truck Equipment Leasing is also good for companies that want to gain a financial edge over their business rivals by being able to reap savings thru leasing equipment (as opposed to buying.) Dump Truck Equipment Leasing would probably appeal to contractors in the construction business that will always need dump trucks (whether to deliver materials or to cart away construction project debris.)

If you get lucky or are just plain smart about choosing a lender, you might be able to get a Dump Truck Equipment Leasing arrangement customized to your business situation. This is very important because businesses (even those in the same industry) may experience different business cycles, and cash flow patterns, while company owners may have different ideas of what constitutes as a sufficient budget. Construction projects are sometimes seasonal in nature, so you need a Dump Truck Equipment Leasing arrangement which can give you the flexibility of adjusting payments to the months when business is peaking and you can afford the payments on the Dump Truck Equipment Leasing arrangement.

Some lenders may offer a very quick processing time (maybe even as fast as 24 hours sometimes) which gives company owners who are in a hurry an advantage for acquiring their dump trucks quickly. If you have the right documentation on hand, you could find yourself signing your Dump Truck Equipment Leasing contract fairly soon after submitting the leasing requirements.

Be sure though that the leasing options the Dump Truck Equipment Leasing arrangement you enter into has the right provisions you were seeking. For instance, if you are expecting to purchase the dump truck after the lease term has been completed, look carefully through the contract to make sure that that stipulation is there.

Also, verify with your company accountant if your corporate income stands to gain via deductions from such a Dump Truck Equipment Leasing arrangement. This would probably be dependent on some tax laws or business tax conditions that only accountants may be updated about. Ask your accountant to also examine the Dump Truck Equipment Leasing arrangement for the presence of soft costs (like installation expenses, and maintenance and training costs) so that you know if you gain more savings that way – or if you have to pay extra (as the case may be.)

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