To Purchase or Hire Equipment? Short Term vs Long Term Solutions
Is it better to purchase or hire equipment? Recently, one of our clients was facing this question themselves. Their business regularly uses mini excavators. Continuously hiring was costly and was coupled with a constant risk that the equipment would not be available. Given the last couple of years, especially with the pandemic, finance did not seem to be a possibility…. Until it was.
Our team got together to find a financing deal that would suit their business needs. Finding cost-effective solutions, even when other financing companies cannot, is exactly what we do every day. We are immensely proud to have helped finance this excavator, knowing this was the right decision for our clients.
Mini Excavators, Machinery, Cars and More – Financing Deals Exist for a Range of Business Equipment
The construction industry is a prime example of an industry that requires an enormous range of equipment to conduct its work. We have access to a vast range of finance deals to assist with all kinds of machinery purchases. Because of this, we were able to help our clients secure the right finance for their excavator.
According to Equifax, the demand for equipment finance has been surging. Why? Because businesses are looking at how they can best grow and expand and get back on their feet since the pandemic started(*1).
Now is the Time to Review Your Hire/Purchase Plans
We encourage all businesses to review their hiring and purchasing plans for the coming future. The worst that could happen is that you continue with your current hiring. On the other hand, you may find a more financially beneficial solution.
Could an investment in equipment help you and your business to:
• Get back on your feet?
• Take on more work?
• Free up cash-flow?
You are always welcome to discuss your options with us. If you decide you would like to explore finance further, we will guide you through the entire process.
Finance for Purchases or Hiring of Construction Equipment Such as Excavators?
What is the Best Option for Your Situation?
Short Term – Hiring Equipment
Seasonal and one-off contracts may not justify buying equipment. If you foresee or have secured multiple seasonal contracts, perhaps buying would be a smart decision.
Although every situation is different, it is always worth reviewing purchase/hire options. Every extra dollar you can keep a hold of is worth it. After all, you are the one putting in the long days after sleepless nights.
Long-Term – Purchasing Equipment
For long-term projects and businesses that regularly hire, a purchase may be most cost-effective. Purchasing usually saves money in the long term because repayments work out lower than renting. When you hire equipment, you still need to pay for insurance and other fees and you are paying off someone else’s equipment.
Purchasing also saves the worry of equipment not being available. Given how stretched the construction industry is, concerns regarding equipment availability are very real (*2,3). If a purchase is something you are considering, the biggest challenge moving forward will be securing finance.
This is where our expertise pays off. As business’ continues getting back onto their feet, we are here to help secure finance that is going to help all business owners in the long term.
*1. Mason, S in Santhebennur, M. Demand For Asset Finance Spikes: Equifax. The Advisor. 2021.
*2. Master Builders Victoria. Australia Faces Worst Material Shortage In More Than 40 Years. 2021.
*3. Howard, D. 3 Unexpected Equipment Challenges Construction is Facing in 2021 – And What to Do Now. For Construction Pros. 2021.