Construction Equipment Leasing

Written by James McNee
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In the United States, construction equipment leasing amounts to over three billion dollars each year. Many businesses recognize the benefits of leasing, including flexibility, custom options, improved cash flow, and easy upgrades. Another consideration is tax advantages. Lease payments are considered a pre-tax business expense, which reduces the taxable amount.

Facts Concerning Construction Equipment Leasing

Leasing is available for almost any type of construction equipment, including bulldozers, trucks, cranes, and jackhammers. Many contractors and construction companies take advantage of flexibility to structure a lease that addresses their needs. An example would be a seasonal lease that schedules payment at peak periods when cash flow is not a problem.

Construction companies use construction equipment leasing as a way to keep up with current technology. Upgrading to newer equipment at the end of a lease term is a major benefit since it guarantees that businesses will not be stuck with obsolete machinery. Often, upgrades and add-ons are built right into the lease. The typical term of a lease is between 36 and 60 months. However, there are custom options available for the construction industry.

Expert advice is available on construction equipment leasing. Experts will explain advantages such as keeping more cash in reserve for unexpected expenses or for future purchases. They should be knowledgeable about tax advantages and offer suggestions for a customized plan. It is wise to compare services and contracts to check for hidden costs such as prepayment penalties.

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