Construction equipment is at the heart of every construction company. As a contractor, you know the importance of having all the equipment you need to complete the projects you have won in bid wars. If you are lacking in a certain piece of equipment, say a boom crane, you could just rent it. The problem with renting equipment, however, is the deadline in which you have to return it, and the heavy cost to rent. Instead, you could look into construction equipment leasing. The funding for leasing is easier to get than you might realize, but you will have to choose between leasing to lease or leasing to own. 

Leasing to Lease Benefits 

Leasing to lease means that you are essentially renting the equipment as though you are going to buy it. You probably will not buy it, but leasing extends to you unlimited time to use the equipment for the duration of the lease's contract. This is a better option than actually renting the equipment from an equipment rental center because you do not have to return leased equipment until the lease is up.

The overall cost of leasing the equipment each month is often less than renting it from a rental company too. The leasing company covers regularly scheduled maintenance and repairs related to wear and tear, so you never have to pay those expenses. The only downside to leasing for the sake of leasing is that you will not own the equipment, and you are required to pay for any major damage that occurs. 

Leasing to Own Benefits

Leasing to own requires that you take out a business loan to lease the equipment. However, you already know ahead of time that you are leasing to own the equipment and that it will eventually belong entirely to you and your construction company. While your equipment is under the lease contract, the leasing company covers minor repairs due to wear and tear and supplies maintenance so that the equipment is fully functional for the length of the lease.

At the end of the lease, you pay one large balloon payment for the remaining amount owed on the equipment to own it outright. It is the same as if you were leasing to own a car, except that this equipment is earning you money on the job while you are paying for it every month. Financing for either lease option is available.