Managing a business that uses heavy equipment can be challenging. The costs of maintaining and repairing machines when they break down can bankrupt your business. Therefore, when you have to buy equipment like a new excavator, you want to keep costs down. This is where heavy equipment financing can help you when you are planning on purchasing new excavators for your business.
Leasing vs. Financing
Leasing and financing your equipment are two different options you might be considering. Financing gives you many benefits, such as owning an asset that can also be leveraged financially for the needs of your business. Leasing allows you to get equipment at a base-level price and make small payments with an option to buy when the lease runs out. Often, leasing can be a good solution but does not give you some of the advantages of owning a machine. The equipment you own with the financing can be used to obtain loans, sell for cash, or do other business financial structuring that you might need to grow your business.
What is financing? It's buying debt with money you have available in your bank account. It provides short-term financial stability that is necessary for growing a business. However, it comes with significant risks and costs that must be understood before choosing a type of financing for your equipment or construction project. When you finance an equipment purchase, you become the owner of that asset for the duration of the financing transaction.
Find Your Excavator
When financing excavation equipment, you want to make sure that you are getting a good deal. Once you have decided to finance your equipment purchase, you will need to find the right excavator machine. There are several options to buy these machines, which can be new or used. New machines are going to be the most reliable and the most costly. Therefore, you might want to consider financing used equipment too. If you finance used equipment, make sure to inspect its condition and ask for records to ensure you are getting a good deal.
Managing Equipment Financing
The payments and costs of financing also need to be managed when buying new equipment. Check with your financing service about some of the details of your contract, such as when you can pay off the loan, interests, and penalties. The terms in some contracts will allow you to pay off your equipment over time by advancing payments from your accounts. Financing your equipment allows you to buy materials and parts more efficiently and also gives you more control over how the equipment is used.
If you are looking to expand your business or just need a new machine, contact an excavator equipment financing service to help you finance the new equipment.