If your business is in need of crane equipment, then you will have to think of ways to acquire it. And rather than trying to utilize your business funds or resorting to a business loan for purchasing the equipment, you may be better off choosing to lease it. Below are the three ways you can benefit from leasing the crane equipment-
- Higher Chance For More Credit: Getting credit is no easy task. Creditors look for many factors to ensure that they only lend money to trustworthy businesses which they feel will be in a position to repay their debt and interest in full. And if they do not think that you meet their criteria, then you have a very low chance of getting approved for financing. And one of the most important criteria the creditors look for is your existing credit line. If you already have piled on so much debt that your debt to asset ratios are skewed, then you can forget about receiving credit. And this is where leasing becomes beneficial. When you acquire crane equipment through leasing, you won’t be showing the lease as a debt. As such, your debt to asset ratios remain intact and you will look much more attractive to creditors. So, if you are wondering how to finance a crane acquisition, then do consider leasing.
- Include Soft Costs In Financing: When you buy crane equipment, you will not only be spending money on the equipment itself but also additional costs like transportation, installation, modification, operator training, etc. All these little costs can add up and eventually become a significant portion of the final acquisition cost. And if you plan to buy it through a loan, then you will have to put up more money in addition to the loan to actually be able to purchase the crane. But by using a lease option, you can forget about all such disadvantages since a lease will cover all soft costs. As such, you won’t have to spend a penny on your side to get the machine to your location.
- Get The Equipment You Really Want: If you were planning on acquiring a crane equipment using your own funds or by a loan, then you will be limited by cost considerations. For example, you may like an equipment, but because you don’t have too much to spare, you may be forced to pass it off and select a cheaper equipment. With leasing, you can forget about such matters. Since you are not making any upfront investments, you are literally free to choose any equipment you want. The only limit you have to consider is the monthly installment. And as long as you can meet the monthly installment, you can acquire the exact equipment you desire no matter how high the price tag is.
So, keep the above considerations in mind when thinking of how to finance a crane equipment. Remember to consult with the leasing companies to know how exactly a lease can help you in making the crane purchase.