Construction equipment financing … Loan vs. Lease. When it comes to construction equipment, there are advantages to both.
The Advantages of a Loan
Construction equipment is not as threatened by obsolescence as equipment in industries such as technology or medical equipment. With proper maintenance, construction equipment can more than outlast the cost-benefits of a lease. Once payed-off, you enjoy the benefits of ownership and the future flexibility to utilize accrued equity to leverage working capital when needed. And as far as taxes go, there is still the ability to depreciate.
The Advantages of a Lease
The tax advantages of a lease are always substantially more. Especially in the case of a true operating lease where the payment is 100% deductible. Lease payments are typically much less and fixed for the term of the lease, while long-term loan money is usually on a floating or variable rate tied to prime or some other indices. Finally, conventional equipment loans can require up to 25% down, while leases usually require little or no down-payment to start.
Once the decision is made whether to loan or to lease, the next step is finding the right source for funding. We have categorized the lending criteria of over 4000 funding sources and made them searchable in our lender directory. All you have to do is fill out a few forms about your business and we will give you a list of all the lenders in our database that you matched based on your business and its funding needs. You will only receive lenders if you match their criteria 100%, so don’t worry about wasting your time with lenders that your business will not qualify with. Come get your free matched list!