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Information about construction equipment leasing
QUESTION:Tell Me More: Construction Equipment Leasing
ANSWER: Leasing construction equipment makes good business sense. Skid steer loaders, loaders, backhoes, and excavators all get significant wear and tear, so investing in an outright purchase can be an expensive gamble. There are three main types of providers you can turn to: brokers, captive leasing companies, or independent lessors.
Captive leasing company - Manufacturers of construction equipment often offer leasing through subsidiary leasing companies.
Broker Equipment leasing brokers take your lease requests to the banks and financial services companies most likely to agree to finance your construction equipment.
Independent lessor - Banks, equipment lease specialists, and more diversified financial companies lease directly to businesses.
Often, the type of leasing provider you should turn to will depend on your situation. A manufacturers captive leasing company is worth investigating if youve already decided exactly what equipment youre going to buy because dealers are very familiar with their procedures, they can also help you get approved. They also are familiar with the value and returns on construction equipment.
If you have a financial services provider that knows you and is familiar with your business, you may want to start with them. If youre not familiar with leasing or with the product you need to lease, brokers are the best at providing multiple options and helping you get the lease you need.
Choosing the right leasing provider
Its important that you evaluate prospective lessors just as carefully as theyre evaluating you. Look for a leasing provider with the right experience. Some lessors specialize in construction equipment, while others may not be familiar with it at all. Also look for a lessor who will act like a partner instead of treating you like a faceless account.
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