The construction industry is one of the engines of America’s economy. Over 7 million people work in construction in the US; [2] many of them running small businesses. Contractors help keep America running by building and maintaining the structures and roads we use, and they need the right equipment to do that.
When a construction business needs to expand, they generally need to do it quickly. This is an industry where businesses must respond to clients’ needs on the fly, as the work order changes. Sometimes, it’s necessary to acquire new resources quickly. That can be tricky. Sourcing specialty equipment for rental can be challenging. There’s also the fact that renting something like a crane or utility truck can get expensive. It’s often more efficient just to purchase equipment outright. But that’s not exactly cheap, either.
In an industry this diverse, there are plenty of ways that businesses grow. Contractors come from a variety of different backgrounds and credit profiles. Not everyone can meet the stringent specifications for a standard business loan and not everyone wants to buy new equipment. Most traditional bank loans will not cover used equipment. It’s okay to buy used or reconditioned equipment in good condition. That means there are often huge savings compared to going with a standard business loan. In addition, most busy contractors simply don’t have two or three weeks to wait for a loan approval from a financial institution.
That’s why for the construction industry, equipment financing can be a godsend. Equipment financing allows a business to access capital without dealing with big banks. Applying for equipment financing doesn’t affect an individual’s credit score, nor does it impact the business owner’s individual credit profile. In fact, equipment financing often helps open the door to more credit availability.
With equipment financing, there’s no big down payment and approvals are received within 24 hours.
The majority of construction businesses are eligible for this type of financing from general contractors to HVAC specialists and more. Best of all, equipment leasing can be 100% deductible up to $1,000,000 under section 179 of the tax code.
There are no two ways about it: equipment financing is a great way for construction businesses to maximize their flexibility. Financing makes it possible for contractors to expand into new territories and offer new services. This is a great way for any contractor to maximize their potential, no matter what their specialty is.
[1] https://www.bls.gov/iag/tgs/iag23.htm
[2] https://www.agc.org/learn/construction-data
[3] https://www.allianceleasing.net/customer-success-stories.html