According to recent estimates, the price of lumber has risen by nearly 360% in the past year.
If you own a construction firm, you might be spending a lot on raw materials, and so you may not have enough left over for equipment. Thus, you may want to learn more about how you can secure financing for construction equipment.
Keep reading, and you’ll learn more about how to secure construction equipment financing. By the time you’ve finished this post, you should know how you can secure the money you need for your equipment.
Table of Contents
Get Clarity on Your Costs
To begin with, you need to get some clarity on the types of construction equipment you will need, and how much each item is going to cost you.
If you don’t know how much each item is going to cost, you might want to go to a local retailer that sells construction equipment. In doing so, you can ask the staff about the prices of certain kinds of equipment.
Note that you might also want to consider asking stores about construction equipment rental.
Renting equipment can often be cheaper than buying the equipment outright. Note that when you rent equipment, you might have to rent it over the course of a year or so.
The company renting you the equipment will tell you what your monthly payments will be over this time period. Once you have these figures, you can then determine the total cost of renting the construction equipment.
Can You Outsource Certain Parts of the Project?
Before you try to secure financing, you should consider whether you can outsource certain parts of your project.
For instance, if you need to do some welding, you may want to use the services of someone such as the Accurweld Company.
In doing so, you will find that you don’t have to fork out a lot of money for ‘in-house’ equipment, and this will then reduce the cost of the entire project.
Create a Project Book
If you want to secure financing, you will need to create a project book that describes the construction project you need financing for.
This project book should explain what your costs will be and how long the project will last. You should also explain why this project is viable, and you might do this by describing how the project will make money.
Once you’ve created this project book, you can then take it to companies that provide financing for construction projects.
They’ll look over this book, and if they like what they see, they’ll give you the money you need for your equipment.
Do You Know How to Secure Construction Equipment Financing?
This post has covered some of the basics in regards to how you can secure construction equipment financing.
As you go about this process, you will likely encounter several lenders that aren’t willing to do business with you. This is normal, and it’s important you don’t let this get you down.
As long as you keep approaching lenders, you will eventually come across someone that’s willing to work with you.
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