How to Get Equipment Financing for Your Construction Company

While it’s no secret many economic indicators are decidedly negative, it’s not all doom and gloom. Prospects for construction spending on buildings have actually improved since the start of 2022; the mid-year update from the American Institute of Architects projected it to increase just over 9% this year and an additional 6% in 2023.

That good news means that if you own a construction company, it’s important for you to be prepared to take advantage of opportunities as they present themselves. While you have little control over supply chain issues and labor shortages, you can make sure you have the right equipment to win projects and complete the work. And that may mean investigating the world of construction equipment financing.

Why seek construction equipment financing? The overarching reason is to remain competitive. Financing construction equipment allows you to affordably replace worn-out equipment or secure a specialized piece of equipment for a specific job, supports your ability to obtain new construction technology and may provide tax savings in the form of additional deductions.

What are the benefits of construction equipment financing? The “whys” noted above are important benefits but there are also some others. By financing equipment rather than purchasing it outright, you increase the amount of working capital you have on hand for other expenses. In addition, you can incorporate your monthly payments into your overall expense planning with the knowledge that you will already be starting to make a profit by using your new equipment.

How does equipment financing work? It is quite straightforward. There is minimal paperwork and funding can occur within days. The equipment serves as the collateral and repayment terms generally range from two to five years.

Is equipment financing right for my construction company? It is if you want to enjoy all the benefits noted above. You will, of course, need to ensure that you are able to make the monthly payments to pay off the loan within the time period agreed to.

How do I qualify for equipment financing? How do I apply and how long does it take? You may be pleasantly surprised to learn how easy it is to qualify and apply for construction equipment financing. In many cases, you will only need to complete an online application, submit three months of business bank statements and produce the equipment invoice from the seller.

The Takeaway

As the owner of a construction company, securing financing to purchase the equipment you need to be successful is a great strategy to build your business. Unlike traditional lenders like banks, whose application and approval process can be cumbersome and often end with a “no,” alternative lenders are in your corner and focused on helping you make your business dreams come true.

If you have any questions about how your construction company can secure equipment financing, give Clear Skies Capital a call at 800-230-9822. You may be pleasantly surprised at what you qualify for.