Why Construction Companies Should Consider Equipment Leasing

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November 03, 2014

As a business owner, you likely go out and buy a new piece of construction equipment every time you have a new or unique project to complete. Although this allows you to complete your projects successfully, it can also hinder your business’ profitability and ability to keep a necessary amount of working capital on hand for your operations. Construction equipment leasing allows you to make payments on your equipment over time and is an advantageous solution for many reasons.

Predictable Payments

When you lease your construction equipment, you will be able to make payments with a set interest rate and payment schedule. Many other types of financing often have unpredictable payment schedules with interest rates that vary from month to month. By leasing your equipment, you won’t have to deal with the fluidity of a traditional loan to acquire the capital you need.

Tax Advantages

Construction equipment leasing is associated with many different tax advantages. For example, you may be able to deduct the full amount of payments you made on your lease as business expenses. This is advantageous in comparison to a traditional loan because these loans often only let you deduct a certain portion of your overall expense. However, you should talk with your business’ accountant before you make any final tax decisions regarding your equipment lease.


The terms of your construction equipment lease can often be tailored to the specific needs of your business. For instance, if you know that you will likely have to replace a certain piece of equipment within a few years, you can match the length of your loan to complement when you will need to replace this piece of equipment. This way, you will be able to have the funds available at the end of this period to confidently buy the new equipment that your business is in need of.

Less Risk

Have you ever purchased a piece of equipment only to discover a newer or more technologically advanced model was introduced to the market soon after? With construction equipment leasing, you don’t have to worry about being stuck with a piece of outdated equipment for the next several years without having the funds to replace it. By leasing your equipment, you will have a greater level of financial ability to choose to wait to replace your equipment or buy the new equipment in the meantime.

These are just a few of the benefits associated with leasing your construction equipment. If you want to know more of these advantages, contact us today!


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