Companies in the construction industry are always looking for ways to save money and grow without compromising on the quality of the work done. They want skilled construction workers, the best building materials and the essential equipment for the job at hand. One option that is popular among construction businesses and contractors across the nation is equipment financing. If you are not fully aware of how equipment financing works and how it can help your business save money, read this Union Commercial Capital blog post further discussing construction equipment financing.
Get Your Equipment Now, Without Breaking The Bank
Maybe you have a construction project coming up or you need to upgrade a specific piece of equipment. Through financing, you can get the equipment you need right away. Whether you need to replace old equipment or buy a new piece of equipment, this can be a game changer. The initial investment to get started is easy on your budget, and so are the monthly payments. This allows you to distribute your cash flow to other important expenses, such as inventory, payroll and bills.
Because the equipment financing process is quick and easy, you can acquire cranes, backhoes, tractors, excavators and more in a relatively short time frame. Meaning, your construction jobs can stay on schedule without any interference. This makes your clients happy and helps you make more money.
Preserve Your Working Capital
Using up all of your company’s cash or credit line to purchase construction equipment is not a smart business move. What if your revenues come to a halt and you need capital to help you stay afloat?
Financing is a great way to preserve and build your capital. Being able to build your capital each month can reduce or even eliminate the stress and anxiety that are associated with financial problems.
Section 179 Tax Deductions
The Section 179 tax deduction allows you to deduct the purchase price of qualifying equipment that you purchase and put into use from now through the end of the year. Section 179 works with equipment financing and cash purchases.
There are limits to how much you can deduct each year with Section 179, and not all equipment is eligible, so make sure you talk to your accountant about Section 179 in further detail.
Opens Up Opportunities for New Construction Contracts
The types of jobs that your construction company does depends on your company’s size, equipment and capabilities. Whether your business does small or large commercial and residential renovations or multi-unit projects, there are always opportunities to expand into new markets.
If you have an opportunity to bid on a job with a size and scope that you are not familiar with, do not pass on this simply because you do not have the necessary equipment. You can finance 100% of the equipment cost and take on new construction jobs as they become available. You can also take advantage of used equipment financing programs, in which you finance equipment from resellers.
In Summary
Construction equipment financing provides your business with a way to get equipment without the upfront financial risk, while helping you take on new projects that you currently lack the tools for. This option is ideal for both short-term and long-term construction projects, and it can help you outfit your company with the equipment to help you succeed and grow. .
Feel free to contact us if you have any questions or would like to move forward with a program tailored to your business's needs.
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