Leasing and financing of construction equipment is the best way for most companies to acquire the equipment they need to get the job done. Leasing construction equipment allows you to use the equipment for a specific amount of time and then turn it in or buy it. When leasing construction equipment, you pay a monthly payment but you also have the option at the end of the lease to upgrade the equipment. Learn the different construction equipment leasing types and styles so you can choose an effective equipment lease.

Construction equipment leasing types and styles are broken down into the following categories: truck and tractor leases, heavy equipment leases, and surveying and light equipment leases. Truck and tractor leases are used for motor vehicles and trailers that are not included in heavy equipment. Heavy construction equipment is the larger equipment used to lift, push, dig, etc. Lift equipment is handheld or smaller equipment like scaffolding and power tools. Surveying equipment includes all of the tools and gadgets used when surveying land.

1. Find truck and tractor construction equipment leasing options.

2. Learn the options of heavy equipment financing.

3. Discover construction equipment leasing services for surveying and light equipment.

Action Steps
The best contacts and resources to help you get it done

Lease construction equipment such as trucks and tractors

Construction equipment leasing for trucks and tractors also includes other vehicles, such as trailers and off-road vehicles. These leases vary by amount and type depending on the value of the vehicle and the length of the lease.

I recommend: Visit Access Equipment Leasing for construction equipment financing and leasing information. GCR Capital provides construction equipment leasing services for off-road trucks and trailers. View the types of commercial trucks and trailers for lease at Intek Truck Equipment Leasing & Financing.

Find heavy equipment lease information

Construction heavy equipment includes wheeled excavators, graders,excavators, dozers, loaders, crushers and much more. Heavy equipment leases are customized to your business and the equipment you need.

I recommend: The Volvo Group provides information about leasing construction equipment from them. Landmark Financial supplies a variety of heavy equipment leasing options. Find heavy equipment financing options at First City Capital. Find a list of heavy equipment lenders at US Architecture.

Locate types of surveying and light construction equipment leasing services

Surveying equipment and light equipment leases cover handheld equipment used both in construction and by surveying companies. These leasing options differ from company to company and rely on credit information and equipment values.

I recommend: Visit Tiger Leasing for construction equipment leasing services for light and surveying equipment. Crest Capital handles a wide range of construction equipment leasing opportunities. Visit U.S. Corporate Capital Leasing Group to find a variety of light construction tools and equipment for lease.

Nothing can be a bigger disappointment than losing a job because you didn’t have the right equipment for the job. While it is possible to lease construction equipment on a short-term basis, this can quickly erode your profit margin. Instead, perhaps it’s time for you to change your business by leasing construction equipment.

When it comes to heavy equipment leasing, it’s easy to believe that there isn’t a lender who would even consider you a strong candidate to finance. But even if you don’t have a ton of money put aside or the best credit in the world, it is possible to qualify for construction equipment financing. There are many heavy equipment lenders in the market today who are more than ready to help you grow your business.

When looking for heavy equipment lease information available to you, among the key points to consider are:

1. The benefits of construction equipment leasing versus financing.
2. The current stage of your business in its lifecycle.
3. The type of construction equipment for lease in your area.

Action Steps
The best contacts and resources to help you get it done

Choose to lease heavy equipment to free up capital both now and in the future

When you choose construction equipment leasing, you're able to procure the equipment you need without the cash outlay required in heavy equipment financing. This frees up capital for you to use otherwise to grow your business now. It also minimizes your cash loss in the future because of the inevitable depreciation of the equipment over time.

I recommend: iBank offers a network of more than 325 lenders who are available to provide a wide variety of financing, including heavy equipment leasing. Ervin Leasing specializes in leasing equipment to contractors of all types.

Start your construction business by leasing construction equipment

The beginning of any company is always fraught with much worry over finances, but the construction industry is unique in its requirement for high-dollar equipment to do business. When your business is new, it can be difficult to find a heavy equipment lender willing to fully finance your necessary purchases. It is much easier, though, to find construction equipment leasing as a start-up construction business.

I recommend: Capital Funds Leasing offers construction equipment financing to businesses at all points in their lifecycle. By offering operating leases with fair market buy-outs, Tiger Leasing gives new construction business owners who prefer to own their heavy equipment the ability to purchase equipment at the end of the lease term.

Explore your options in leasing used equipment

In some parts of the country, there is a strong quantity of used heavy equipment available on the market. Much of this equipment is only barely used, and offers you the ability to save a substantial sum of money over new equipment. This can reduce your leasing costs and allow you to purchase more equipment than you would expect.

I recommend: GCR Capital allows for the leasing of used heavy equipment as well as new. You can also contact Access Equipment Leasing for heavy equipment lease information.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Always make sure you are comparing 'apples to apples' when looking at various construction equipment financing options. If a particular lease seems too good to be true, it just may be.

Leasing construction equipment can be very advantageous to businesses. Benefits include not having to make a large financial investment at one time, not owning equipment that has outdated technology and particularly with equipment, not having the maintenance headaches if your lease agreement contains those conditions.

There is a variety of leases available to businesses. Examples include tax, operating, capital, skip and step-up leases. Some lease agreements particularly the step-up lease, offers low monthly payments in the early stages of the lease before increasing as a business’ cash flow improves.

Action Steps
The best contacts and resources to help you get it done

Tax lease

A tax lease, also known as a true lease, is a lease agreement where a business pays to utilize equipment for a specified time. At the end of the lease, the business may return the equipment, renew or extend their lease or purchase the equipment for its fair market value price. Tax deductions for monies paid on lease payments may be available to business owners.

I recommend: To learn more about tax leases, refer to the Capital Funds Leasing website.

Operating lease

Operating leases are beneficial to businesses that need equipment for a short amount of time. Operating leases offer businesses affordable payments and, depending on the lease agreement, the ability to trade up to a different piece of equipment that best suits their needs. Like other leases, at the end of the agreement the business may return the equipment, renew the lease agreement or purchase the equipment for its fair market value price.

I recommend: Refer to the AXIS Capital website for more information on operating leases.

Capital leases

Capital leases allow businesses to assume legal ownership of the equipment at the end of the lease period. This leasing method is beneficial to those businesses wishing to purchase equipment without having to make a huge initial investment. Capital leases have one of four specifications in the agreement such as the legal transfer of ownership at the end of the lease, the option for the business to purchase the equipment at a discounted price, the length of the lease is at least 75% of the equipments projected life and lease payments are at least 90% of the equipment's fair market value.

I recommend: To learn more about capital leases, refer to the Lease Finance Group website.

Skip lease

Skip leases, sometimes referred to as seasonal payment leases, allow businesses with fluctuating income to skip some monthly payments without penalty as identified in the lease agreement.

I recommend: For more information on skip leases, refer to Graybar Financial Services.

Step-up lease

Step-up leases, also known as graduated lease payments, have monthly payments that start out low and increase over time as the cash flow of the business improves.

I recommend: For more information on step-up leases, reference the IMM Financial Solutions website.

Terminal rental adjustment clause

Terminal rental adjustment clauses (TRAC) allow businesses to purchase equipment at the end of a lease agreement for the price established when the lease took effect. At the end of the lease, the business can do one of four things: purchase the equipment at the pre-established price, trade or replace the equipment, extend the lease or return equipment and establish a rental adjustment agreement.

I recommend: Refer to the Bizquoter.com website for more information on terminal rental adjustment clauses.