Construction Equipment Financing
Construction Equipment Financing -
Search over 4,000 sources of business financing, free.Construction equipment financing - Loan vs. Lease. When it comes to construction equipment, there are advantages to both. The Advantages of a LoanConstruction equipment is not as threatened by obsolescence as equipment in industries such as technology or medical equipment. With proper maintenance, construction equipment can more than outlast the cost-benefits of a lease. Once payed-off, you enjoy the benefits of ownership and the future flexibility to utilize accrued equity to leverage working capital when needed. And as far as taxes go, there is still the ability to depreciate. The Advantages of a LeaseThe tax advantages of a lease are always substantially more. Especially in the case of a true operating lease where the payment is 100% deductible. Lease payments are typically much less and fixed for the term of the lease, while long-term loan money is usually on a floating or variable rate tied to prime or some other indices. Finally, conventional equipment loans can require up to 25% down, while leases usually require little or no down-payment to start.
Search over 4,000 sources of business financing, free.Construction equipment financing - Loan vs. Lease. When it comes to construction equipment, there are advantages to both. The Advantages of a LoanConstruction equipment is not as threatened by obsolescence as equipment in industries such as technology or medical equipment. With proper maintenance, construction equipment can more than outlast the cost-benefits of a lease. Once payed-off, you enjoy the benefits of ownership and the future flexibility to utilize accrued equity to leverage working capital when needed. And as far as taxes go, there is still the ability to depreciate. The Advantages of a LeaseThe tax advantages of a lease are always substantially more. Especially in the case of a true operating lease where the payment is 100% deductible. Lease payments are typically much less and fixed for the term of the lease, while long-term loan money is usually on a floating or variable rate tied to prime or some other indices. Finally, conventional equipment loans can require up to 25% down, while leases usually require little or no down-payment to start.
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