HEAVY EQUIPMENT LEASING – PRAFTON FINANCE
Increase your business productivity and profitability is what we strive to do – in fact, it is in our mission. That means providing quality dependable equipment when you need it. As mobile heavy equipment experts, we understand the unique needs of the industry. That is why every leasing and financing option we provide is tailored for you – whether that is the interest rate, payment, or initial upfront costs.
Which financial solution is right for you? If equity and ownership are your priorities, a lease may be your best bet. If you want flexibility and a way to free up cash for other needs, consider a lease!
Life is all about choices, and so is equipment leasing from One Stop Leasing. When it comes to heavy equipment, both renting and buying have their pros and cons. Deciding between the two options becomes much easier when you thoroughly evaluate the current capabilities and plans of your business. The initial cost of the heavy equipment is certainly a major deciding factor. However, it is also important to consider factors such as availability, usage, and many others.
Buying and maintaining equipment is expensive, and as soon as you invest in a piece of machinery, it’s not a matter of time before a new version comes out, making yourself obsolete or inferior. Heavy equipment leasing offers advantages that owning does not, including lower monthly payments, which are typically spread out over months or years rather than delivered in a lump sum.
4 BENEFITS OF HEAVY EQUIPMENT LEASING:
So, you have decided to start a business. Congratulations! Wherever you are in your journey, there will be new equipment that can help you to build your business so that it will truly flourish. But did you know buying that equipment, isn’t your only option? Here are four key benefits of leasing the equipment of your business.
- Conserve and control cash: Equipment leasing saves your working capital for day-to-day business expenses, business expansions, or unexpected business-related expenses. In addition to saving your working capital, with a lease, you have a pre-determined monthly line item, which can help you budget more effectively.
- Upgrade outdated equipment: Depending on your business type, equipment leasing can help you stay on top of the latest advances in equipment and technology. If you are planning to keep it for the short term, you may find that leasing is a better alternative than buying it and trying to resell it when you no longer need it.
- Tax Benefits: Lease financing presents your business with potential tax benefits. In many cases, leasing not only provides businesses with a full deduction of lease payments against current earnings but also preserves working capital that you wouldn’t have access to if you had to purchase your equipment upfront.
- More attractive balance sheets: Monthly lease payments are viewed as a business expense instead of long-term debt. Having little debt on your balance sheet helps your secure financing to fund your business. And who doesn’t love a sexy balance sheet?
UNDERSTANDING EQUIPMENT – FINANCING AND LEASING
To understand equipment financing and leasing, it’s important to understand what is considered “equipment”. There are two options available for financing new equipment for a business:
- Equipment leasing.
- Equipment Financing.
Here are some of the important things you need to know about each financing type to help you determine which will make the most sense for your smaller business.
- Equipment leasing: Leasing is similar to borrowing, however in a lease, it’s the tender that purchases the equipment and then leases it back for a flat monthly fee – sometimes lower than the payment on the loan would be. Most equipment has a fixed interest rate and fixed term, but interest rates and terms can vary depending upon the leasing company.
- Equipment Financing: Equipment loans can come from a variety of sources depending upon worthiness and the nature of the equipment being purchased. The equipment can itself be sometimes be used for collateralizing the loan. Term of equipment loans varies depending upon the individual lender.
Heavy equipment leasing is very common in the construction sector, where contractors have to purchase exceptionally expensive machinery to accomplish various projects. This cash that would be paid out for an item of machinery will depreciate as it’s used. With heavy equipment leasing, you only have to have the machinery you need on hand constantly, it’s a great way to reduce the danger of having idle equipment you do not need, but it is trying out space and costing you money!
5 HIGHLIGHTS TO CONSIDER WHILE SELECTING AN EQUIPMENT FINANCING COMPANY:
- Experience is one of the first factors while we have to consider when selecting a company for an equipment financing program. Newer equipment leasing companies might not have the expertise or resources that business owners need to finance a new project, no matter how large or small it is.
- Convenience is another factor to strongly consider while choosing heavy equipment leasing. Many companies can provide the similar rates across the board, but only a few offer the catered and dedicated service that a business owner wants, Construction business owners should seek companies that have professionals who can thoroughly walk customers through the entire financing process.
- Size is an important factor while choosing financing companies. There are many heavy equipment companies of various sizes and working with a company that is growing is a good sign of reliability. There is a high demand for leasing equipment which leads to higher demand. In response, successful equipment finance companies have been increasing their staff and even expanding businesses.
- Reputation, when choosing a financing resource is how satisfied customers or clients are with the entire process. Many companies will have a page on their website dedicated to customer testimonials satisfying rates. Viewing testimonials from other businesses in the construction industry can help to provide insight on how to process can help you as well.
- Industry specialization is the last factor choosing an equipment leasing company that specializes in a wide variety of industries, not just the construction industry, which can be the smart one. This is because construction business owners may lead to financing other types of furniture or machinery as well, not just heavy equipment.