Business Funding Secrets

 

 

 

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Construction Equipment Leasing

As the economy continues its downturn, and with the credit crunch affecting most every aspect of bank financing, construction companies can turn to Construction Equipment Leasing for flexible financing that will assist in preserving cash.

Banks will continue to tighten their lending parameters. Therefore a number of companies that traditionally purchase their equipment will be forced to make the decision to lease instead.

This opens up opportunities for Finance Consultants to assist the construction company that has traditionally worked with their local banker. There will also be opportunities with start-ups and companies in their early stages of development that will not be able to obtain financing through their usual sources for funding.

Construction companies can find the cost of equipment leasing very competitive. Construction Equipment Leasing companies have the expertise for these types of transactions where as the local bank may have expertise with other forms of finance.

Equipment leasing is a common practice used by many businesses to keep their costs in control. By using leasing as a finance option companies can cut their start-up costs along with avoiding additional expenses for upgrading equipment.

Equipment leasing also helps companies to keep their balance sheets healthy, as monthly equipment payments can be categorized as operating expenses. Equipment Leasing works very well for companies that are undercapitalized - keeping them from needing to invest large portions of their funds in equipment. Equipment leasing can provide many benefits.

Leasing companies may provide funds where banks won't, such as:
            * Industries tough to finance.            
            * Companies in a growth phases, but short on cash.
            * Established businesses that have hit their limit with the bank.

Depending on the leasing company, funds available for construction companies may range from a few thousand to several million dollars.

Construction Equipment leasing is a great source of financing for both small and large construction companies. From the structuring of the lease to the asset management that comes with leasing, it can be a very economical decision for construction companies who are acquiring equipment to use construction equipment leasing.

*** Tips ***

1.      Companies should examine the alternatives leasing can provide and compare that to loans they are requesting to purchase assets.

2.   It is estimated that 80% of businesses use some form of equipment leasing. If your business is not using it, or if you are a Consultant and not selling it as part of portfolio of services, you should consider it.

3.   Economic downturns and tighter capital markets does not mean funding is not available. However, you may need to look at receiving funding from different avenues. Check of this list of sources for Construction Equipment Finance.

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Business Funding Secrets

It is the intent of the Business Funding Secrets newsletter to provide tips, techniques, and advice on getting business deals funded. Whether you are a person looking to fund a business, or a Consultant who submits deals to funding sources, we want to stress to you how important it is to have your Funding Request  along with all the other documentation, be clear, concise, and specific.

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E-mail Replies

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To your capital success,

 Brad MacLiver