Construction Finance
Construction equipment finance is essential for construction companies, contractors, and other entities in the industry to manage their cash flow effectively, acquire the latest technology, and remain competitive. It allows businesses to access the equipment they need to complete projects without tying up large amounts of capital upfront.
Construction equipment is often expensive, and many businesses, especially small and medium-sized enterprises, may need financial assistance to acquire, upgrade, or replace these essential assets. Construction equipment finance provides a means for businesses to access the necessary tools without requiring a significant upfront capital outlay.
Key features of construction equipment finance include:
Types of Equipment Financed: Construction equipment finance can cover a wide range of machinery used in construction projects, including excavators, bulldozers, cranes, loaders, concrete mixers, pavers, and more.
Leasing: Businesses can opt for equipment leasing, where they pay regular lease payments to use the equipment without owning it outright. Leasing is suitable for businesses that prefer to upgrade their equipment regularly or want to avoid the long-term commitment of ownership.
Loans: Equipment loans involve borrowing a specific amount of money to purchase construction equipment. The borrower then repays the loan amount, typically with interest, over a set period. Once the loan is repaid, the business owns the equipment.
Flexible Repayment Terms: Lenders often offer flexible repayment terms to align with the cash flow and revenue generation of the construction business. This may include seasonal payment options, balloon payments, or customized schedules.
Used Equipment Financing: Financing options are available not only for new equipment but also for used machinery. This can be beneficial for businesses looking to save costs by purchasing pre-owned equipment.
Collateral: The construction equipment itself often serves as collateral for the financing. In the event of default, the lender may have the right to repossess the equipment to recover the outstanding amount.
Tax Benefits: Depending on the jurisdiction, businesses may be eligible for tax benefits related to equipment financing. This can include deductions for interest payments or depreciation on the equipment.
- Funding available for new and used equipment
- Terms of up to 84 months available
- Raise cash equity by refinancing existing equipment and machinery
- Defer VAT payments on large purchases, easing your initial cash outlay
Looking for funding to grow your Construction business? Let us power your growth by simply contacting us via the details below:
Construction Finance Case Studies
Cash Equity raised by Refinance
£108,000 cash equity raised by re-financing existing plant machinery assets for Scottish based civil engineering business
Two Crushers funded with CBILS Facility
£667,000 Crusher’s funded for a large Civil Engineering business through the government backed CBILS facility
