Construction Equipment Leasing

If you are in the manufacturing or construction industry

, your business requires a lot of financing to get started and to stay in business. Construction equipment is not cheap by any means and it may be a bit of a challenge to find a lender that will provide you with the financing you need to get started.

Construction equipment leasing is a great opportunity as it provides you with the equipment you need without the hassle of borrowing large sums of money. The other great thing about constriction equipment leasing is that you can have brand new equipment to work with instead of old machines that may break down, forcing you to pay for expensive repairs.

Contractors typically turn to construction equipment leasing as they do not have the large cash reserves to pay for the equipment. Leasing is a fancy term for renting equipment. When you rent your equipment, you will go through a corporate credit check along with standard procedures required whenever you rent equipment like a background check. Once the firm deems you a low risk borrower, you will draw up a rental agreement with them. There are short-term and long-term contracts that you can look over and decide which one you need. Usually the contracts are 6 months or less. Anything over this time typically involves purchase of the equipment through a rent to own type program with the company.

Leasing has a lot of benefits, one of which is the ability to test out new construction equipment. Since you arent buying the equipment, you do not have the debt obligations along with the maintenance and repair costs for the equipment. You also dont have to concern yourself with the end cost for buying the equipment since buyers always have interest to pay on the equipment. The interest alone can cause you to pay for the equipment two times over, which is less than desirable for small contractors.

John Deere is one of the most popular construction equipment manufacturers on the market. They provide a construction equipment leasing program that over 20% of contractors and companies utilize. Their program is one of many that is helping smaller businesses gain access to the equipment they need to make their business a success without the large debt obligations with traditional loans. If you cannot find a dealer with a leasing opportunity, talk to your local bank that specializes in construction loans. They usually have a leasing opportunity they can work out for you to help you get the equipment you need.

by: Andy Kyle

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