Purchasing construction equipment, lightweight machines to heavy machinery, as well as other supplies makes the foray into the business of construction tough on one’s financial account. Thus, while planning an entry in the construction business it is important to consider finance especially equipment finance as equipment is the backbone of any construction business.
There are a number of unique financial models created especially for those people seeking construction equipment finance. One should consider options like equipment rental plans and equipment on lease options. When one opts for equipment finance options like equipment rental, one can avail the benefits of smart financial models like those that give lenders the option to rent equipment at a low rent along with an option to purchase the rented equipment at anytime during the period of the one year rental contract; or continue to rent at the end of a year by renewing the contract. A great opportunity to grow one’s construction equipment business, it will definitely help one cut down on costs, given the low payment options of most equipment finance providers. This equipment rental option is available on both new as well as second hand equipment.
While there are many traditional equipment lease and equipment finance options, these new finance models are more beneficial against equipment lease options. Equipment rental with the new equipment finance models can be availed much faster as compared to traditional leasing. The traditional equipment lease agreements are also very rigid and not flexible as the against the flexible equipment rental packages. The terms of the equipment rental plan can also be changed while that of a traditional equipment lease cannot be changed unless the agreement is broken. What is more a lease reduces your equity while an equipment rental plan has no such effects. In fact equipment rental offers flexibility that neither equipment leasing nor purchasing can offer.
Thus, the traditional equipment finance options like leasing equipments should take a back seat when one is seeking equipment finance. With the many new financial models catering especially to new businesses and start-ups as well as those that look to grow their business, those looking for equipment finance should consider the various equipment rental options to gain maximum benefits. The profit margins of businesses that use such unique plans are also definitely higher; thereby making equipment rental plans the ideal choice for all.
The author is an active blogger and financial analyst by profession. Her knowledge of and interest in financial funding options for businesses and start-ups has seen her contribute to and write several articles on topics like finding the best sources for equipment finance , equipment lease vs. equipment rental, etc.