At the heart of every construction operation is its equipment. When it comes to running a successful construction business, few things matter more than the machinery you have at your fingertips. It will be necessary to have the right amount and types of equipment to make that possible, especially if you would like to take on bigger and better projects and watch your company grow.
From excavators to haulers, and from loaders to scrapers and compactors, there are so many types of heavy equipment that deserve a spot in your fleet, as they can provide incomparable value to your day-to-day operations. With each new piece of equipment you add to your roster, you can significantly improve the quality and efficiency of the work you do on every job site.
Although there are many benefits to purchasing heavy equipment and building up your fleet for the sake of your business’ success, such equipment is not cheap. In fact, it can cost you tens of thousands of dollars for a single piece of compact equipment, and larger rigs may even cost hundreds of thousands of dollars.
Therefore, despite needing a lot of heavy equipment, you may be worried about whether or not your business can afford to fork over that kind of money. On the other hand, waiting to save up enough money to afford all of the equipment your business needs could take years. In the meantime, you will have to find alternative ways to get jobs done.
Fortunately, buying equipment outright is not the only option that is available to you. Another perfectly viable option that may be better suited to your operation’s current financial situation is getting your equipment financed.
There are actually a large number of benefits to financing your equipment, the most significant of which are as follows:
One of the main reasons that many construction businesses find financing to be an attractive option for acquiring heavy equipment is because of the opportunity that it gives you to preserve capital.
Financing (rather than paying cash for equipment) can help you mitigate the uncertainty of investing in capital assets that may not yield the returns or produce the cost savings and future sales you originally imagined. In most cases, lease payments can be matched to the productivity of the equipment on the lease.
When you decide to go with a lease, it also becomes much easier to maintain cash flow and manage consistent budgeting. Rather than having major capital expenditures that result in equally as significant fluctuations to your budget, the more consistent spending that financing allows for will make it possible to organize your expense planning.
That way, it will also be easier for you to plan for the future of your business, as you will know what to expect from a financial standpoint in the coming months and years.
Another great reason to look into financing is the flexibility it will afford you and your company, especially regarding business fluctuation. Just like other industries, the construction industry as a whole can suffer from seasonal business fluctuation, and your business may experience seasonal changes.
Fortunately, several types of leases are available and allow for lower monthly payments when your revenue goes down during those seasonal changes.
With competition between construction operations getting fiercer all the time, it is necessary to have access to the latest and greatest heavy equipment on the market. Of course, that is also usually the most expensive equipment to buy, so many businesses cannot afford it.
Yet, if you use financing, you can acquire equipment that would otherwise be out of reach, thus gaining the upper hand over your competition and boosting your business (and profits).
One of the biggest causes for concern when it comes to acquiring heavy equipment is having that equipment become obsolete. This can sometimes be hard to avoid, as new and innovative technology is constantly released.
However, the risk of owning obsolete equipment can be eliminated when you use lease financing since there are many lease agreements that provide options to make updating your equipment more accessible. When it’s time to upgrade, most dealers will handle the disposal of the old equipment as well as the other technicalities associated with the transition so that you don’t have to worry about it.
If you are looking to ramp up your operation but do not currently have the capital to make some outright purchases, Great West Equipment can help with heavy equipment financing in British Columbia.
We are proud to be a one-stop shop with a massive stock of top-quality new and used equipment as well as finance and lease programs to help you get that equipment back to your job sites. We are happy to work with you to develop financial solutions that will take care of all your needs.
We offer both operating and capital lease programs along with loan products. Our friendly and experienced finance team will gladly take the time to discuss your capital needs and inform you about the various ways we can offer quick and easy solutions. We value transparency and will make it easy for you to keep track of exactly how much you will need to spend each month on your lease.