Construction equipment leasing

 

Construction equipment leasing

One of the questions we are frequently asked is in regards to the type of equipment and vehicles we finance for the construction industry. We generally will lease most new and used construction equipment, ranging from $5000 to $1M, that is not permanently attached to a building or premise. We also provide lease financing and refinancing, for most construction vehicles, from 1 to 500 units.

What is the rate? Another common question. Lease financing is a different form of financing from a bank loan. Some factors which affect the rate include: time in business, type of equipment being leased, size of transaction, length of term, and overall credit strength.

You have several options at the end of a lease, depending on the type of lease including the following:

  • Buy the construction equipment for $1.00
  • Purchase the construction equipment for fair market value
  • Continue to rent the construction equipment month to month or for a specific period of time (i.e. 3 months, 6 months, one year, etc)
  • Return the construction equipment to the Lender

It can be beneficial to establish a master lease agreement whereby the client can agree to the general terms and conditions of a lease in one document which will govern subsequent transactions.  Under the master lease, the business will have schedules for each “batch” of equipment they finance over time with the lender.  Schedules can be for different terms depending on what is appropriate for the equipment being financed. If there is additional equipment or vehicles needed, you can simply add it to the master lease.

For more information on construction equipment leasing visit here or see our video.