Note that running a business in the construction industry calls for the use of proper tools and equipment to achieve your objectives. As an entrepreneur, it serves your interest to equip your business with the right equipment. The cost can, however, be higher and overwhelming. Learning the alternative construction equipment financing options to embrace is therefore important. This guide explains the options.
Equipment Leasing
Equipment leasing is a financing option you can consider for your needs. This is where you lease the equipment for specific needs and a specified time. Instead of borrowing loans to buy a new one, you use the available equipment at a cost and return it later. Compared to other equipment financing options, leasing is cost-effective.
SBA Loans
Under SBA, different types of loans can serve your construction business. You can consider SBA CDC or 504 loans that serve major fixed asset purchases. Unlike other financing options, SBA loans have the federal government’s support, making them suitable for any entrepreneur in the construction business. The repayment periods are flexible, and interest rates are lower, unlike other loans.
Business Term Loans
A business term loan is another financing option for your construction equipment needs. You can access business term loans from both traditional banks and alternative lenders. In most cases, the lenders provide the loans for a specific purpose which in this case it is construction equipment financing. The repayment terms and interest rates depend on the agreement with the lender.
Online Equipment Loans
Besides the traditional lenders and credit unions, you can get the funds for your construction equipment needs from online lenders. Some online lenders specialize in financing construction businesses making it possible to secure the equipment. The lenders offer flexible terms and rates on the loans provided to the borrowers. The application and approval process is also swift.
Personal Loans
Using personal loans is another way to finance your construction business needs. You can use funds from a personal loan for equipment financing when other options become hard to get. You can get a personal loan from a traditional bank or alternative lender in your area.
Finding an effective construction equipment financing option for your business is paramount. By learning the options, you save valuable time, fund your business and achieve your objectives. Contact us at WHW Capital for professional guidance.