When you run a construction company, you depend on your equipment. If you want to be successful, you can't afford to be using equipment that is outdated or damaged. Unfortunately, it's not always possible to pay cash for your equipment. Not to mention the fact that cash purchases aren't always the smartest option when you're running a construction company. With all the wear and tear you put on your equipment, you could be spending cash to purchase new equipment on a yearly basis. That's where lease financing comes into the picture. By financing your equipment, you won't have the massive outpouring of cash for your purchase. Instead, you'll enjoy manageable payments for the equipment you need. You'll also enjoy the benefit of replacements when your current equipment becomes obsolete. To help you avoid problems with your financing, here are four steps you'll need to follow.
Don't Go in Empty-Handed
When it comes to securing financing for your construction equipment, it's crucial that you avoid going to the finance office empty-handed. As a business owner, you'll need to provide a variety of documentation before you can secure financing for your equipment. To expedite the process, you'll need to bring those documents with you. Your documentation should include copies of your most recent business tax returns, copies of your financial statements, as well as copies of your business licenses. Arriving prepared will help you avoid delays in the loan process.
Go with a Dedicated Loan Company
If you're looking to secure financing for construction equipment, it's best to go with a dedicated loan company – one that is attached to the manufacturer of the equipment you hope to purchase. Some companies, like Triton Capital, know that using a bank isn't always the best option when it comes to securing financing for construction equipment. You'll get your financing, but that's about it. When you work with a dedicated loan company, you'll be creating a working relationship with the loan company, and the parent company.
Consider Your Future Equipment Needs
When it comes to financing your new construction equipment, it's always smart to consider your future equipment needs. The equipment you're purchasing might be effective right now, but it might not be suitable for future growth. If you're anticipating exponential growth in the near future, be sure to go with equipment that will suit you now and then.
Work Around the Peaks and Valleys of the Industry
If you're going to be financing your equipment, you'll need to make sure that the repayment program works around the peaks and valleys of the industry. In the construction industry, business tends to slow down when the weather takes a turn for the worse. To make sure you can afford your payments during the valleys, make sure your repayment schedule is flexible enough to accommodate the changes. One way to do that is to ensure that you can make larger payments when business is booming, and reduce your payments when business is slow.