Category Archives for Construction Equipment Leasing

Compaction Equipment Leasing

“Compaction Equipment Leasing For New And Used Assets”

Compaction equipment leasing is a form of financing where the asset is acquired by the leasing company and then provided to the borrower or lessee for use during the term of the lease.

The lease can be in the form of an operating lease or a capital lease.

An operating lease has at least 10% of the acquisition cost outstanding at the end of the lease term with the lessee having no more than an option to purchase.  A true operating lease is also an operating expense to the business and not always recorded on the balance sheet other than a foot note.

A capital lease is similar to a loan from accounting and taxation purposes in that you can expense the interest paid and deprecate the asset similar to if you owned it.

At the end of a capital lease, the lessee or borrower must purchase the asset for a nominal amount, usually less than $20, to transfer ownership from the leasing company to the business.

We can arrange both operating and capital leases for new and used compaction equipment.

The financing is provided by leasing companies in our network that have a focus on construction equipment leasing.

A Compaction equipment lease can be arranged in as little as one day for financing amounts under $100,000 and up to 5 business days for larger amounts.

Compaction Equipment Leasing Rates And Terms Will Depend On Financial And Credit Profile.

For most “A” and “B” credit applications for compaction equipment, the borrower or lessee will need to be in business for three or more years.

Most small business leases require a guarantor and for better rates and terms, the guarantor’s personal credit will need to be 650 or greater.

Depending on the size of the equipment lease financing request, the business may need to provide accountant prepared financial statements and potentially tax returns to support historical cash flow and future debt service capabilities.

Regardless of financial and credit profile, we have “A”, “B”, and “C” credit options that can be considered in most cases.

Our goal is to get you working with the most relevant leasing companies as quickly as possible so you can get the capital in place that is required to meet your business needs.

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Click Here To Speak To An Equipment Leasing Specialist For All Your Compaction Equipment Lease Financing Requirements

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Bulldozer Lease Financing

“Bulldozer Leasing Available On Both New And Used Units”

One of the great things about bulldozer lease financing options is that there can be a lot of them available to you.

This is largely due to the long useful life associated with this type of asset.

Equipment leasing companies for the most part are very comfortable with the security value provided by bulldozer and the supply of financing available at any one time is going to be directly proportional to the strength of the resale market.

Put another way, when the economy is going well, most heavy equipment will be at work and there will likely be more demand than supply for used assets.

Conversely when the economy goes through a down swing, there tends to be more heavy equipment assets up for sale which pushes down the price and in turn offers a lower level of security to a leasing company that may have to resell the asset.

But when the resale market is solid, this drives the sale of both new and used equipment and provides a solid exit strategy for an equipment leasing company, creating more financing interest in bulldozers and related equipment.

Because the construction industry can be very capital intensive, its important to get as much leverage as possible from the construction equipment financing market to conserve your cash for operations.

This is why bulldozer lease financing can be so valuable as in many cases the financing being arranged is at or near 100% of the acquisition cost of the asset.

Bulldozer Leasing Can Be Arranged For Small And Large Amounts

And there is no real minimum or maximum amount that can be financed as well with some transactions being under $50,000 and others well over $100,000.

The key to maximum leverage is the strength of the company’s credit profile and cash flow.

When credit and cash flow are strong, lease financing companies are less concerned about debt to equity ratios on the balance sheet and focus in on the quality of the asset being taken as security.

The leverage on used assets will not typically be as high as they are for new, but in many cases leverage in the 80% to 90% range in possible.  And equipment age in some cases can exceed 10 years allowing for assets to also be refinanced at times.

Regardless of your bulldozer equipment leasing need, I suggest that you give us a call so we can complete an assessment of your requirements and review different equipment leasing options with you.

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Click Here To Speak To An Equipment Leasing Specialist For All Your Bulldozer Leasing Requirements

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Asphalt Equipment Leasing

“Asphalt Equipment Leasing For New And Used Equipment”

Asphalt equipment leasing is available for both new and used asphalt equipment.

There are many benefits to using building equipment leasing programs for this type of asset including seasonal payment plans.

In most parts of the country, asphalt work is seasonal and so is the cash flow from the work performed.

With an equipment leasing option, we can work to get your payments structured to meet your cash flow whether that be monthly, quarterly, or semi annual payments, or a payment schedule that is further customized to fit your cash flow.

New asphalt equipment can be acquired for little to no money down and used equipment, while typically requiring more of a down payment, can still be arranged for up to 90% of the acquisition cost.

The key to used asphalt equipment financing is the condition of the asset and the remaining useful life.  Because most of this equipment is manufactured for a long use period, its also possible to finance assets that are more than 10 years old, provided they are in good enough condition.

For most applications under $100,000, a financing approval can be secured within 24 to 48 hours once a fully completed application is submitted.

For larger purchase amounts, the process can take a few days longer as more financial information may be required for review.

Asphalt Equipment Lease Financing  Provides Great Leverage For Construction Companies

Because road construction can be a very asset intensive type of service, its important to have proper financing in place to make your equity go the furthest.

This is where equipment leasing can play a major role in not only helping you acquire the assets you need today, but also to allow for you to plan out a realistic asset replacement schedule over time.

And the stronger the business’s cash flow and credit, the more leverage that can be provided through asphalt equipment leasing programs.

For most new equipment, a strong financial profile can secure at or near 100% financing, and in cases where there is a substantial delivery and/or set up cost for the asset after acquisition, these costs can also potentially be added into a lease, providing more than 100% of the asset cost in the form of financing.

Turnaround time on application requests are very fast and if there are any issues that come up during the application, delivery, or post funding process, we are always ready to provide assistance.

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Click Here To Speak To An Equipment Leasing Specialist For All Your Asphalt Equipment Leasing Needs

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Seasonal Payments For Construction Equipment Leasing

Seasonal Payment On Construction Equipment Leases Can Greatly Improve Cash Flow Management

Leasing construction equipment is a great way to gain a high amount of debt financing leverage for your business.

At the same time, if the construction work you undertake is seasonal like many construction companies, then you’re likely going to have a seasonal income stream.

With most debt financing facilities monthly debt servicing is required to cover off the interest expense and pay down the principal balance.

One of the advantages of securing construction equipment financing is that lease repayment schedules can be arranged for seasonal cash flow such as semi annual payments or even annual payments.

Another alternative is monthly payments for the construction season, but with the monthly payments adjusted to include the interest and principal required for the whole year.  In this way, there would be no payments required in the off season months, making cash flow much easier to manage.

Operating Leases Can Also Help With Construction Cash Flow Management

Another way to further improve the cash flow of you business is by structuring your construction equipment leasing facility into an operating lease where by a portion of the principal, likely between 10% and 30%, is not factored into the repayment schedule during the term of the lease.

The scheduled payments would only include the interest cost incurred on the total principal outstanding as well as the principal portion that is to be repaid during the lease term.

Once the lease comes to an end, if the business wishes to retain the equipment, it would have to pay out the deferred principal portion or balloon payment in cash or refinance it in some other manner.

By structuring a construction equipment lease in this fashion, the business is taking the least amount of money out of its cash flow to service equipment lease payments.

For more information on the different ways we can work with you to structure a construction equipment lease to meet your unique requirements, please give us a call and we’ll go through the available scenarios with you and get all your questions answered right away.

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Click Here To Speak To an Equipment Leasing Specialist For All Your Construction Equipment Lease Financing Needs.

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Heavy Equipment Leasing

We Provide Heavy Equipment Leasing Solutions To Our Customers

Heavy Equipment leasing or lease financing is available through our lease finance partners here in Canada and the U.S.

With the amount of capital that can be required to operate a construction, commercial, or industrial work crew where heavy machinery is required, the option for lease financing can be key to keeping your operation up and running.

In order to make sure we can cover off the equipment leasing requests we do get for heavy equipment, we have developed key relationships with leasing companies that collectively can finance both new and used equipment as well as a broad range of credit profiles.

For used equipment in particular, the longer potential useful life and remaining useful life of any given heavy asset, the easier its going to be to get lease financing in place.

And because heavy equipment can have a significant useful life, we can many times get rates and terms that come close to what you can get if you were purchasing a new asset.

The key advantage of heavy equipment leasing is the amount of leverage you can secure in a relatively short amount of time.

The leasing companies that finance this type of equipment can make a financing decision in a matter of days with funding to follow shortly there after.

Depending on the strength of the borrowing companies financials and credit, financing can also be secured at or near 100% of the cost of acquisition.

Get Heavy Equipment Leasing That Meets Your Business Needs

There are a number of additional advantages construction leasing for heavy equipment can provide to your business including but not limited to seasonal payment structure and balloon payments at the end of the lease term.

With respect to seasonal payments, depending on your exact type of business, you may only be operating and generating income for part of the year.  If this is the case, then we can work with our leasing partners to see if we can secure a heavy equipment lease on a quarterly, semi annual, or even annual basis.

If there is need to further reduce the amount of debt service coming out of cash flow, a heavy equipment lease can also potentially be structured into an operating lease whereby 10% to 30% of the original acquisition cost is paid back at the end of the lease term in what we call a balloon payment.

This will effectively lower your monthly debt servicing requirements in the short term, allowing available capital to flow to different areas of need.

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Click Here To Speak To an Equipment Leasing Specialist For All Your Heavy Equipment Leasing Needs.

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