Virtually all companies, including construction companies, need some type of equipment to run their business, and to ensure that operations proceed smoothly. Generally speaking, most businesses don’t have the cash reserves to purchase the needed equipment, or they don’t want to tie up all their funds in a massive investment, even if it is for company assets. That makes it necessary to seek equipment financing from other sources.
If you have a construction company, there are a number of reasons you should consider obtaining equipment financing to grow your business.
Flexible financial products
A mere 20 years ago, there weren’t nearly so many financial products available which construction companies could take advantage of for purchasing new equipment. Nowadays however, alternative lenders have stepped into the gap to provide a number of favorable financial products which can be customized to accommodate your company’s specific cash flow needs, or your accounting practices.
Preservation of your capital
There’s a considerable risk in making a major investment of capital into a single piece of equipment, especially if you have a small business. That makes it very important that you safeguard your capital reserves, because many times that reserve capital is all that separates you from thin times or even bankruptcy. When you arrange for equipment financing, it represents a much smaller risk than going through all your cash reserves.
For most construction companies, it’s essential to have the latest equipment, so that you can stay competitive in your marketplace, and so that you can gain as many efficiencies as possible in your daily operation. By arranging for equipment financing, you can usually acquire the very best available technology, and give your business a big boost in efficiency.
Better expense planning
When you arrange for equipment financing, you will have a fixed monthly payment which you can plan for every period. By contrast, when you make a huge capital outlay, it can trigger massive budget fluctuations. You should also be able to obtain tax considerations on your full payout leases or equipment loans, which will enable you to take depreciation on any new assets which you have acquired.
Does your company need financing for new equipment?
If so, we may be able to help with the funding for that critical new equipment. Contact us at Rotay Capital Finance, so our financial specialists can discuss some options which might be available to you for funding the equipment you need to grow your business.