Are you looking to build a business in the construction industry? Or, do you have an existing contracting company that you would like to scale up, so you can accept new types of projects and expand your revenue?
In either case, you will need to get your hands on some heavy equipment you can rely on as you take on construction jobs and create a successful operation.
Unfortunately, such equipment can be quite costly, and your bills can add up very quickly, especially if you purchase multiple machines, which often cost anywhere from tens of thousands to millions of dollars each.
If this is a new venture for you, or your previous one was lower scale, such high upfront costs can be very intimidating and even discouraging. It may even seem impossible to afford all the machines you want and need since saving the necessary amount could take a very long time.
However, fortunately for you, paying for all of this heavy equipment upfront is not the only option available. It is also possible to finance heavy equipment, so your costs are spread out over time rather than being too extreme initially.
When you lease or loan heavy equipment, getting your operation up and running becomes much more manageable without any cash flow problems because it removes the pressure of having to handle an overwhelmingly heavy financial burden at once.
Equipment leasing allows you to rent heavy equipment rather than buy it. In this situation, a lender typically purchases the gear you want for your operational needs, and you pay them in monthly installments so that you can use that equipment. However, like with apartment or car rentals, you will not own the leased equipment when the lease term ends because it will still belong to the lender.
Suppose you are interested in eventually purchasing the equipment so you can continue to use it even after your lease is up. In that case, you may want to look into a capital lease agreement rather than an operating lease.
Operating leases do provide opportunities to take ownership of the equipment eventually. Still, with a capital lease, your lender can include a clause in your lease agreement, providing you with an opportunity to purchase the equipment at the end of the term. In most cases, you can then buy the equipment based on its residual value.
There are numerous advantages to leasing heavy equipment. Since down payments are typically lower in a leasing arrangement, your upfront costs will certainly remain much lower.
An equipment loan allows you to borrow money from a lender to pay for heavy equipment. You then have to pay the lender back for this loan in regularly scheduled payments and an agreed-upon amount of interest.
However, at the end of your loan term, when you have fully paid your lender back, you will own the equipment outright, and it will be yours to do with whatever you please.
Most heavy equipment loans are unsecured, but in many cases, a heavy equipment financing agreement may stipulate that the equipment itself is the collateral. That means, if you fail to make your repayments, it may be possible for the lender to repossess the equipment.
However, most of the time, you can negotiate the term length with your lender, in the beginning, so you can decide how long you would like to spread the payments out and how high (or low) you would like each payment to be.
The most significant benefit of getting a heavy equipment loan is that your payments will go towards the asset, so if you ever decide to sell it, you can return some of your investment. Also, it is usually much easier to qualify for a heavy equipment loan than other loans.
You can generally get approved for the loan even without an amazing credit score. Then, once you are approved, paying off your loan can help your business establish or improve your credit, which will make other loans even easier in the future. Finally, since the equipment will be considered an asset, you can claim tax credits for interest or the equipment’s depreciation over time.
Great West Equipment would be glad to assist you with heavy machinery financing in British Columbia so you can build a fleet of equipment you can be proud of for your construction operation. Our Finance and Lease program options for new and used equipment are an important part of our one-stop shopping experience. Great West Equipment and our strategic OEM finance partners can offer you a range of financing solutions, making your overall leasing experience easier than you can imagine.
If you are interested in leasing equipment from us, we can offer both operating and capital lease programs to accommodate whether your final goal is to buy the equipment eventually or not.
On the other hand, if you are more interested in financing equipment through a loan from us, you can do so confidently since all of our loans are fully protected. We even offer financing options for machine upgrades and major repairs if you are interested in our Major Equipment rebuild and Refurbishment programs.
Our finance team values full transparency, so we will gladly walk you through the terms and conditions of any of our leasing or loaning programs that catch your attention. We want you to be able to make your purchase from Great West Equipment with total confidence that you are securing high-quality equipment with extremely fair financing because customer satisfaction is our top priority.
For more information about how you can partner with us to set up a heavy equipment financing or leasing arrangement or to request a consult, call Great West Equipment at 1-833-730-0613 or contact us here.