If you own a construction business, you know that purchasing new equipment can throw a wrench in your company’s budget and drastically impact your bottom line. Taking advantage of financing options allows you to expand your business without tanking your cash flow or exploding operational costs.
Unexpected expenses can be mitigated with short-term loans that see you through, and can even avoid putting your business in financial risk during slow periods. Capital expenses, such as new construction equipment or expensive repairs, can bring a project to a halt, forcing an immediate replacement whether your finances are ready for it or not.
Winter time can be harsh, not just for the weather, but for the slow period it forces on your construction business. Contracts are minimal, or they get postponed until spring, causing cash flow to dry up. This is a time when you tighten your belt and look for cost-saving opportunities.
However, cutting staff and scaling back operations can prove unwise when you have to scale up quickly in the spring. Putting off necessary repairs can also cause project delays that cost you money when the weather thaws.
During the off-peak season, you should take advantage of alternative financing options, such as capital expenditure loans on a short-term basis to get you through the slow winter construction period.
Your business can benefit from alternate financing in a number of ways. Some benefits include:
Spending money on new or used equipment, hardware/software upgrades, tractor trailers, company vehicles and office furniture can be accomplished with flexible terms (typically up to five years).
Save on finance rates and taxes on your construction equipment loans. Find out what rates you qualify for and how much you can borrow towards your purchasing goals this winter. Be ready for the busy spring construction season with the equipment you need to land larger, more profitable projects.
Equipment financing can be structured to reduce your tax burden. This includes tax efficient leases that include tax benefits.
Conventional lenders offer little, if any, flexibility in your repayment options. However, equipment specific lending offers flexible financing that takes into account the rhythm of your industry. In certain circumstances, full equipment financing can be obtained with no down payment.
At MY Company Funding LLC, clients have the opportunity to grow their earning potential without impacting working capital. Borrow the money you need to ramp up and begin payments in 30, 60 or 90 days. Contact us today to get started.