Construction business owners need a significant amount of capital to build their businesses and keep them running. Finance companies can offer funding options that are not available with banks and other traditional financial institutions.
Here are some of the reasons why your business needs construction equipment finance:
- Access to new equipment and technology
Using the newest and best equipment provides a number of benefits. When you buy a new tool or technology, it comes with warranties that provide protection against unexpected breakdowns. This equates to reduced maintenance cost and downtime for repairs. With new equipment, your chances of getting new clients or projects are higher as well, as some projects require the use of the newest equipment and technology to get the job done quickly and properly.
Many startups may settle for using old or obsolete equipment because of the amount required to get newer tools and technology. With asset financing, you can get access to the best tools and technology without going bankrupt in the process.
- Proper management of assets
Besides access to new tools, asset financing companies can also offer the option of disposing or reselling the equipment when the time comes. Most entrepreneurs don’t have the knowledge or expertise to handle obsolete equipment. They may have no idea what to do when it comes to their tools once they reach the end of their life cycle. With the help of an asset finance company, you can take the stress out of figuring out how to properly maintain and dispose of the equipment.
- Preserve capital
There are a lot of risks involved with investing with equipment. For one, you may not know if the asset will yield enough returns for your business to make a profit, or even break even with the investment involved in buying your equipment. By opting for lease finance or a business loan, you can take away some of the uncertainty involved in the investment.
Finance companies offer flexible payment terms to suit your current situation. With flexible payment terms, you can allocate your capital towards other aspects of your business.
If you have any questions regarding asset financing for your business, contact Portman Asset Finance today. Our team of account managers are ready to answer any queries and concerns you may have on asset financing and our other financing products. Click here to find out more about our construction finance products.