If you’re in the market for construction equipment for your business or personal use, there is a lot to consider before purchasing anything at a heavy equipment auction. The construction industry is filled with equipment-intensive settings that require a variety of different equipment types from heavy grade machines to attachments. As a bidder seeking to acquire a particular item, it is important to consider all construction equipment financing options that are available to you.
Choosing to finance the purchase of your equipment rather than paying cash upfront may offer significant benefits to you. It is essential to keep in mind the many factors that will help you decide the best option for your particular needs based on careful planning. Some of these factors include practicality, cost effectiveness, type of equipment, and the length of time the equipment is going to be used. Some of the primary benefits of construction equipment financing are:
Capital Preservation
Capital preservation is what makes equipment financing so attractive to most businesses. Investing in large capital expenditures like heavy equipment for sale can present huge financial risks, especially for smaller companies. Financing can alleviate the uncertainty of investing in a capital asset that may not have your desired return.
Current Technology
It is important to have the latest equipment in today’s world for reasons including safety, efficiency, and durability. Many companies struggle to make big purchases all at once and can fall behind, losing their competitive edge. By financing their equipment, businesses are often able to acquire better equipment - and more of it. This opportunity would not have been possible if they did not consider the financing options available to them.
Improved Expense Planning
Maintaining a budget and cash flow is another factor to be taken into account when considering purchasing heavy equipment for sale. Instead of spending a huge chunk of your capital all at once causing budget fluctuations, finance your purchase to enable the ability to plan exactly how much you will be spending on expenses. Some financial companies allow the borrower to take depreciation on an asset, and some even allow the borrower to make lower payments with no depreciation.
Stay tuned next week to learn more about each and every one of our construction equipment financing partners offered to bidders at Alex Lyon & Son Sales Managers and Auctioneers, Inc. auctions!
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What makes a Lyon Auction unique is that all of the equipment is in the same location. Companies are able to liquidate a large fleet of vehicles in a single auction. Lyon Auction is able to help well-known companies from the conception to the conclusion of the auction. This makes it as headache-free and enjoyable as possible for both the seller and buyer. If you have any questions, feel free to contact us. We’re listening!
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