Construction is an equipment-dependent industry, and the rising cost of equipment is a cause of concern for the owners of construction businesses. One solution is to lease instead of buy construction equipment. Here are some benefits to keep in mind when considering this option.
The upfront costs of purchasing new construction equipment take a significant portion of a company’s budget. Keep your cash flow stable by leasing equipment instead. You then have more funds available to take advantage of opportunities to pursue further projects. When you lease equipment, you also don’t need to worry about its value depreciating over time.
Reduce Costs of Maintenance and Repair
Some leasing contracts include maintenance and repair of the equipment. However, even if you have the responsibility of maintaining leased equipment while you are temporarily using it, the cost will be far less than if you had to maintain it for its entire life.
Eliminate Concerns About Storage
Leasing construction equipment means that you obtain what you need for specific projects and then return it when the jobs are finished. You don’t need to be concerned about having expensive storage facilities in which to keep idle equipment when you have no use for it.
Cut Transport Expenses
When you own equipment, you have to move it from one project location to another regardless of the distance. Leasing construction equipment, though, eliminates this inconvenience and expense. You can instead lease whatever you need from local companies.
Work with Up-to-Date Equipment
Buying new equipment is a significant investment, and construction companies usually feel obliged to justify the expense by continuing to use the items they have purchased even after newer versions have become available that do the work faster and more efficiently. However, with each new lease agreement, you can obtain better, cutting-edge equipment that keeps your company up-to-date and competitive.
For more advice on leasing construction equipment, get in touch with POM Capital & Finding Services.