If you work in construction, having the proper tools is crucial to finishing your project on schedule and within your allocated budget. The proper equipment, such as excavators, bulldozers, and cranes, are essential whether you're working on a road construction project in Calgary, a residential project in Vancouver, or a high-rise in Toronto. However, many firms may find it difficult to pay for this equipment up front due to its high cost. That's when funding enters the picture.
Based in Brampton, Ontario, Planet Financial provides leasing and financing options to companies in locations across Canada, including Saskatoon, St. John's, Toronto, Vancouver, Calgary, Edmonton, Montreal, Ottawa, Winnipeg, Halifax, and Saskatchewan. Their objective is to ensure that you may get the necessary equipment without going over your budget. This blog post will explain the benefits of financing your construction equipment, how it operates, and how Planet Financial can help you lower the cost of the purchase.
Options for Financing: Leasing vs. Loans
Each of the financing alternatives that Planet Financial provides has advantages of its own. This is a summary of the two most popular ways to finance construction equipment: leasing and loans.
1. Loans for Equipment
You can borrow the money required to buy construction equipment and repay it over a predetermined period of time with an equipment loan. When you pay off an equipment loan, you become the sole owner of the equipment. This kind of financing has the benefit of giving you complete ownership of the equipment after your loan is repaid, making it an asset on your balance sheet.
Benefits of Equipment Loans:
- Complete ownership of the equipment after repayment.
- One item that can increase the worth of your company is equipment, which is an asset.
- When the equipment is no longer required, it might be upgraded or sold.
Drawbacks of Loans for Equipment:
- More monthly installments than with leasing.
- Higher up-front expenses or a down payment can be necessary.
- Over time, the equipment's resale value may be impacted by depreciation.
2. Leasing Equipment
On the contrary, leasing gives you the opportunity to rent the equipment for a set period of time, often two to five years, with the option to purchase at the conclusion of the lease. Because leasing frequently has cheaper monthly payments than loans, it's a popular option for companies looking to maintain access to the newest equipment while lowering monthly spending.
Advantages of Leasing Equipment:
- Lower monthly payments than loans.
- Flexibility to change or upgrade equipment when the lease expires.
- Since you do not own the equipment, you are not concerned about depreciation.
Drawbacks of Leasing Equipment:
- The equipment is not an asset on your balance sheet as you do not own it.
- If you keep leasing rather than buying, you can wind up spending more in the long run.
- Certain leases have usage or mileage limitations.
In conclusion, acquire suitable tools in an appropriate manner.
Having the proper construction equipment is crucial for your success no matter where you are in Canada- whether you're overseeing projects in Toronto or taking on a large-scale project in Edmonton, Calgary, Montreal, or elsewhere. Accessing the resources you require to expand your company is now simpler than ever when you finance your equipment purchase through Planet Financial.
For all of your finance needs for construction equipment, Planet Financial is the go-to partner because of our expertise, adaptability, and dedication to client satisfaction. To upgrade your construction fleet and find out more about our financing alternatives, get in touch with us right now. We can assist you in completing the task at hand, regardless of whether you require finance for a single piece of machinery or an entire array of equipment.
