Construction Equipment Loans

Written by Patricia Skinner
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The construction industry accounts for five to six percent of GDP in the United States. Since there is plenty of work in the field, construction companies stand a good chance of succeeding with a half-way decent management. For this reason, loans for construction equipment purchase are not too difficult to secure unless they are very new or have a particularly bad credit record.

Often, a construction company will opt to borrow from a financing company rather than do it through the bank simply because bank loans take so long to be approved. Time is money and the sooner construction equipment can be purchased the sooner the company can start profiting from their acquisition. If equipment is needed to complete work for a particular client, the situation is even more urgent. Any delay could result in the client going elsewhere.

Leasing for New Equipment

There is a way of getting a loan for new equipment that will allow you to have the best of both worlds. Equipment leasing is a way of expanding and giving your company more earning power without tying up huge amounts of capital. The financing company will buy your equipment from you and lease it back to you. You will make payments over a period of time, and once your payments are complete you will once again own your equipment.

Equipment leasing is perfect for start up companies that can't get a loan to buy new equipment because they are too new. Even companies with a shaky financial history can borrow like this. Increasingly businesses are entering into these leasing agreements in order to get the equipment they need.

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