Tricon Leasing Reviews - Heavy Equipment Leasing and its advantages
The heavy equipment leasing is very common in the construction sector and the contractors are required to purchase exceptionally expensive machinery for the completion of various projects. This is the cash that one is paying out for a piece of machinery that would depreciate in value with usage and time. Whereas, the contractors cannot operate without the expensive machinery, one does not want to pay out a huge sum of their working capital for the completion of their job. The solution to this is heavy equipment leasing that eliminates the risk involved in a large capital investment.
The heavy equipment leasing is very common in the construction sector and the contractors are required to purchase exceptionally expensive machinery for the completion of various projects. This is the cash that one is paying out for a piece of machinery that would depreciate in value with usage and time. Whereas, the contractors cannot operate without the expensive machinery, one does not want to pay out a huge sum of their working capital for the completion of their job. The solution to this is heavy equipment leasing that eliminates the risk involved in a large capital investment.
Types of equipment leasing options available:
Before, one can start looking at how to achieve this type of commercial equipment financing and all that is involved; one need to have knowledge of the various types of leases that are available and the advantages that it offers when it comes to financial options. Once one has found out the best equipment leasing companies, they have to find out the best type of lease that is good for them and their business.
*One of the most common options is the fair market value lease that enables the purchase of the machinery for a fair market price at the end of the lease or return it.
*The one dollar lease is another option available. With these leases one can pay the fixed monthly amounts over a set period of time and after the end of the lease, the machinery can be purchased for just one dollar.
*Sale leaseback option is another great opportunity for those who have already invested their capital in the machinery that is needed but in present scenarios they need cash in a hurry. With this, they sell their equipment with the agreement that it can leased back at the rate that has been agreed at. It is used for raising a capital to complete a project.
Advantages of heavy equipment leasing:
There are a lot of benefits of the heavy equipment leasing. The heavy equipment leasing offers a myriad of benefits. Some of these can be enumerated as reduction in risks, improve in cash flow, leasing equipment does not affect ones credit line, no management of machinery, etc. If one were to buy expensive machinery without lease, they would be liable for the maintenance of the machinery, along with paying out a huge amount of capital that could be put towards paying salaries and expenses. With this, one can only be left cash strapped, but the lease agreement facilitates financial freedom and flexibility.
