Owning a construction business means that you are constantly responsible for making the right calls for your crew. You want to make sure that you always have enough cash flow to pay off your men for their hard work, and you also need to keep your own expenses in mind. Equipment, for example, can be quite pricey. When a piece of machinery breaks down, and you do not have the free money to replace it, your operations can come to a sudden halt. This is where it can be beneficial to explore leasing construction equipment. There are plenty of advantages that come along with this decision.

Buying your equipment outright can be very costly. If you do not have the full amount of money with you, and decide to opt for a financing plan, it can mean that you are paying a significant amount more for your equipment over the course of time. With leasing, you will have better control over how much you spend on your necessary machinery. When you sit down with your leasing company, you will know exactly how much you have to pay each month. This can allow you to budget for the future and keep your profits growing.

You also have the luxury of flexibility when you explore leasing construction equipment. Some jobs require very specific tools. Instead of having to spend a great deal of money to get machinery that you will only use for a few weeks, you can do wonders for yourself by leasing. You will be able to set the lease for the duration that you will need the equipment, allowing you to have the tools you need without dropping down huge sums of money.

There are also plenty of options when you decide to lease. You do not always have to go for the newest and most expensive models. In fact, many companies offer used equipment for leases. This means that you will be able to save money by using a slightly used piece of machinery. You will get all of the benefits of having the equipment you need but at a much lower cost.

In order for you to make everyone happy during a construction project, you need cash. To save your finances and make the most from your budget, it can be very helpful to think about leasing construction equipment. Research the idea and you will easily be able to see how advantageous this service can be for your needs.

If you own a construction company or other business that requires the use of heavy equipment, you may wonder if it is better choice to buy or lease. While each of these choices has its pros and cons, the answer depends on the individual needs of your company and what kinds of financial goals you have planned for your business. Before you decide to lease heavy equipment or buy it outright, there are a few factors you should consider first.

The Pros of Buying Heavy Equipment

Buying cement mixers, bulldozers and other large vehicles for your construction company allows you to have greater control in how they are used. You will not be subject to mileage fees or have to worry about what might happen if they should get damaged. Some brands have a high resale value, allowing you to make more profit if you sell them or to put more money toward a down payment on a new item on a trade in. Owning equipment also allows you to rent it out to other construction companies to increase your working capital

The Advantages of Leasing Heavy Equipment  

While owning your own equipment may sound like a highly attractive prospect, there are also advantages to leasing as well. When you lease heavy equipment, it does not negatively impact your company’s line of credit or borrowing power. This may be a great advantage later on when you are ready to expand your company and want to buy an office building to house your sales and administrative teams, a company truck or take out a personal loan. You will be able to grow your company with more flexibility instead of being tied down by long-term loan payments.

Another advantage to leasing construction equipment is that you will be using 100% financing, which does not require that you put any money down. Not only does this mean that you can start using the equipment right away, many lenders offer a no-commitment trial period so that if some items are not a good fit for your projects, you can return them without losing money on depreciation. The faster you can get your equipment on site, the more efficiently your employees will be able to complete projects on time.

Which is the Better Choice?               

While there are many advantages to buying and leasing heavy equipment, the best choice hinges on how you plan to proceed with your company’s finances. If you are attempting to grow your company quickly and need to foster a cash reserve, then you should consider using financing. Before you make your final choice, create a long-term business plan for your company in order to better focus on your goals.

One of the greatest assets to a business is often the most overlooked in times of need. What asset is that? Equipment. The value of a businesses equipment can often be leveraged in times of need and increase cash flow to the business by taking advantage of lease buybacks. What are they and in what ways can they benefit your business?

Lease buybacks allow a business owner to sell equipment he owns already to a leasing company for cash. The leasing company, in turn, leases the same equipment back to the original owner. This gives the business owner access to the equipment he needs for daily operation and also cash needed to expand or purchase new equipment, without affecting the businesses profits or going into debt. There are other major benefits from lease buybacks.

The business owner will no longer have to be concerned about the cost of maintenance and repair of the equipment. With the lease contract the responsibility of maintenance now falls to the leasing company. Leasing also opens opportunities for equipment upgrades. When the lease contract expires the leasing company will give the business the choice to renew with the existing equipment or take advantage of any upgraded models instead. This allows the business to have access to the most state of the art tools.

Business owners are also well aware of the issue of value depreciation of equipment, and dread tax time for fear of that lower value. That is no longer a concern with a lease buyback. The business can deduct the lease payments as a business expense, regardless of any depreciation in value. And the lease payments are easy to budget because they are fixed and regular. Lease buybacks also largely eliminate the need for advances from your lines of credit. If new equipment is needed, instead of worrying about a business loan or going into greater debt with an existing line of credit, the lease buyback would provide the capital needed to move forward.

There are many benefits and very few disadvantages to completing lease buybacks. If you are a business owner in need of more cash on hand, investigate your options to increase cash flow with buybacks and help your business grow. You will see greater return on investment, worry less about maintenance and repair and have upgrade options available when you want. It is a win-win situation for both the business owner and the leasing company.

When you’re business is growing, so is your profit. Unfortunately, as an entrepreneur, it can be difficult to figure out how to get the growth capital needed to further expand your business’s reach. Luckily, there are a few ways to get money for your business and they’re probably a lot easier than you think.

Here are the top four sources of capital for entrepreneurs:

1. Angel Investors

An investor is someone who gives money to your business in exchange for staking ownership in your company. An angel investor is an individual who funds a business because of his/her particular connection with a business, cause or industry. Oftentimes, these investors may have been a savvy entrepreneur at one point themselves while others are simply looking to benefit financially by committing to something that also brings great fulfillment.

2. Venture Capital Firms

Venture capital firms are also investors, but are not exclusive when it comes to funding growth capital. They are generally agencies or businesses with more than one person contributing to your business.

Both angel investors and venture capital firms come with a major advantage: the business owner is not liable to repay the investment. This is especially helpful in case your business hits hard times or takes longer than expected to turn a profit.

3. Loans

Usually this growth capital source is the most dreaded for entrepreneurs. Interest rates that are high, especially among commercial lenders, can loom over one’s business. If your business is ever faced with unfortunate circumstances, the loan obligation may serve as a serious obstacle for growth. This is why it is best to stick with non-traditional institutions. You can find such lenders online or in local community directories. For more favorable interest rates, look for credit unions and similar private lenders or institutions.

4. Self

The least risky source to grow your capital comes from yourself. As a business owner and entrepreneur, it’s important to believe in what you’re offering your clients. If you’ve not done so already, look into different savings or business accounts that offer annual interest yields. Just like loans, sticking to non-traditional lenders will usually get you the most competitive rates. By offering up your personal dollars saved, you’re showing investors – and yourself – that you’re serious about your business. Plus, using your own money is a strong way to hold yourself accountable for the success of your business. Investing in your own business also speaks volumes to investors, if you should go that route one day.

For anyone responsible for carrying out construction jobs, such a general contractor, a construction business owner, or is self-employed in the construction business, having the right equipment to carry out the job is a must. Still, like any industry, it comes down to having the funds to purchase the necessary equipment and tools. If you happen to be low on financial capital, you can turn to equipment leasing as an option.

Construction companies have the option to pursue two major types of leases. Operating leases permit you to lease equipment for a certain period of time. You can also list the lease payments as a business expense and not as debt. This means your balance sheet will not incur liabilities from the lease and you may qualify for a tax incentive. You could also apply for a finance lease, which would allow you to claim the equipment as an asset and increase your holdings. However, operating leases have lower APRs than finance leases, so check to be sure the financing is right for you.

Construction projects last for a finite period but the time to completion will vary depending on the project. You should consider how long you’ll be using the equipment. If you need the equipment or machinery for a short time span, equipment leasing will be cost-effective for you. However, if your project extends to three years or beyond, you may want to explore different financial options such as a loan. Even though you’ll pay less monthly on a lease than on a traditional loan, you must consider if a long term lease will cause a financial pinch for you.

Another plus for equipment leasing is that construction companies can work out an option to purchase the equipment at the end of the lease. By leasing the equipment, you will be able to use it and see if it works for you. This cuts out the potential problem of purchasing new equipment only to find it does not work. This could save you some hassle. Also, you could work out an option that sets a predetermined price for the equipment. At the end of the lease, you can choose to either buy it or return it.

Finally, check to see what kind of equipment the lessor specializes in. Construction equipment can run the gamut from roofing, landscaping, painting or woodworking tools, heavy machinery, or vehicles. A good leasing outfit should have the equipment you need and be well experienced in the field to provide you solid support. This will help make your equipment leasing a smooth and efficient success.

Debt consolidation is the process of paying off multiple high interest loan with a single loan. Ideally, this larger all encompassing loan will have a lower interest rate, which can help reduce both the amount you are paying on a monthly basis as well as the time it takes to repay the entire balance. While this can be a powerful tool for the right applicants, there are many factors that need to be considered when trying to decide if consolidation is right for you.

Quality of the Agency

When looking for a reputable agency to assist you with debt consolidation, begin by looking through local non profit agencies. Trustworthy companies will be licenced through the state and belong to a national trade association. They should also be accredited by the Better Business Bureau. Reputable agencies will focus not only on getting you out of your immediate debt, but in teaching the necessary financial skills to remain debt free.

Be very wary if your consolidation service attempts to upsell you on extras such as insurance or other investments. Their primary focus should be on helping you work your way out of debt, not obtaining a commission. Other red flags include requiring upfront fees, or making too good to be true promises, especially before they review your financial situation.

Watch Out For Small Print

Ideally, when you take out a debt consolidation loan, you are able to restructure your plan to include a reduced interest amount which results in a smaller overall repayment amount. Many unscrupulous lenders work to keep your focus only on lowering monthly payments, but will do so by extending the length of the loan. A smaller monthly payment may sound attractive, but in many of these deals, only a very small amount of your payment actually goes towards paying off the principal balance.

What Happens Next?

Once you are able to secure a low interest debt consolidation loan through a reputable agency, what will you change to ensure you do not fall back into debt? For many, a consolidation loan can feel like a clean slate. Credit cards that were once maxed out are back to a zero balance, and because of the reduction in monthly payments, your cash flow has suddenly increased. It is easy to fall back into old habits, which will lead you right back to where you started. Just because the debt has shifted, it hasn’t disappeared.

When considering where to set up your business, you have two choices: You can buy, or you can lease your commercial space. Although purchasing your own land and building is often considered to be a better long-term investment, leasing has its benefits, too:

• Smaller initial investment – You will most likely be required to pay a deposit on any building you lease. However, a lease deposit is significantly less expensive than a down payment on a purchase. If you do not have 20 percent of your target purchase price saved up, leasing is a better bet.
• Easy to qualify – Although you may have to meet the landlord’s credit-worthiness test, this kind of assessment is often easier to pass than the kind of credit check you would need to pass to secure a mortgage on a comparable building.
• Tax deductible – When you own your commercial space, you can claim depreciation on each year’s tax return, and you can deduct the mortgage interest you have paid. However, when you lease, you can deduct the entire rental amount as a business expense.
• Manageable maintenance costs ­- As a tenant, you may not be responsible for any maintenance or repairs on the building you lease, or you may be required to pay into a maintenance fund each month. As the building owner, you would be required to arrange and pay for all maintenance and repairs upfront.
• Less responsibility – When you lease your commercial space, you can use your working hours to increase your revenue, improve your customer service and develop new products instead of worrying about building improvements, mortgages and finding tenants for empty units.
• Flexibility – Although it may be a hassle to relocate your business from one side of town to the other, it is easier to do this if you have been leasing than if you have purchased a property. One of the disadvantages of buying commercial property is not knowing whether the neighborhood will improve or degrade over time.

Choosing the commercial space that is just right for your business is no small undertaking. You have to consider who your customer base is and where they are most likely to find you, what kind of parking and signage is available and so on. Why complicate things by throwing a mortgage into the mix? Leasing space is the perfect way to get your business going with the fewest number of worries possible. So find a space, get set up and jump right in to the world of entrepreneurship!

If you have been looking for ways to grow your business, you might be considering a merger with another company. These business mergers can be a great way to gain access to resources, increase your market share and decrease costs at the same time. Although there are several benefits for your business, there are some things you should know before agreeing to a merger with another company.

There are many things your company can gain from combining your resources with another company. Many companies enjoy the access to personnel, resources or equipment that may otherwise be difficult to gain access to. Mergers allow two companies to share personnel, equipment and even office space without increasing expenses. Since you will be sharing all of these fixed assets, you will be able to cut costs and put money into the things your business needs or new ventures you have been considering.

Additionally, business mergers provide a way to increase your market share without putting in the grueling time, energy and money that would be otherwise necessary. This sharing of customer databases will vastly expand your marketing network unbelievably fast. In this same way, it can also provide you with a shortcut into other markets that you have been considering.

Regardless of your reason for the change, mergers will require some kind of financing. There are a number of financing options available to you. A common means in which business owners find financing for business mergers is through a loan that is provided against their business assets. These assets, whether it is equipment, inventory or accounts receivable, are collateral for the lender’s peace of mind.

There is also the option for equity financing, in which the lender is given shares of the company in exchange for financing. This will essentially provide part ownership in the company in exchange for the loan. Another financing option that may be useful to you for business mergers is to utilize is mezzanine financing. Although it is similar to equity financing, it is certainly not the same. The loan is based on the value of the company and in the event that it cannot be repaid, the lender would gain ownership of the company.

You may choose to merge your business with another for any number of reasons. There are several ways it can benefit your business and increase your productivity and bottom line. Whatever your reason for the merger, you should be knowledgeable about your options in financing it.

It is no secret that you need cash flow for your business to flourish. Whether your business is small or large, new or well established, this concept is key. Not only can it help to sustain your company, but it is also vital for any chance of growth. Considering this, it is important to constantly seek chances to increase the flow of the cash in your business. Here are a few tricks to consider.

Buying and Selling Equipment

As with any other purchase, you should be strategic with your equipment purchases. Depending upon the type and condition of equipment, it may be more cost efficient to repair rather than replace the machinery. Also, if it is a computer operated system, you may consider installing an upgrade to the technology to cut costs. Should you absolutely need to purchase new equipment, check if a used machine will suffice. Whatever the case, make sure that the equipment will work properly so that you do not compromise productivity, which could end up costing you more in the long run.

When selling your equipment, try to get the best deal possible. If the equipment is in decent shape, you may be able to resale it to another company. Otherwise, you can gain some cash flow by selling to a scrap yard. If you have products that are out of date, you may consider selling them at a discount to a distributor or possibly finding a non-profit to donate them to as a tax write-off.

Negotiating

The art of negotiation is crucial for proper business practice. As you work out deals with clients, you can trust that they will be looking out for their best interest so you must do the same for your company. For large ticket transactions try to get as much money up-front as you can. You may require a down payment, or structure the contract to where you receive payment upon milestones reached throughout the project. A good way to discourage delays in compensations would be to add fees or interest to late payments.

Financing

The saying, “it takes money to make money” is especially true in business. Should you find yourself in a situation where you need extra funds until you receive payment from clients whom you have already secured, there are different finance options available. You can contact a financial advisor to learn more.

Make sure that you have the proper cash flow for your business by implementing these tricks.

Companies that use business credit cards are likely to have a business credit score on file by a business credit bureau, even if they don’t know it. These reports can be used to your advantage, particularly if you’re a business owner and have to get a financial loan or apply for another credit card. Here’s how to understand the most important parts of your business credit report.

First, business credit reports score your business on your past payment history. Scores such as Dun and Bradstreet’s PAYDEX score or Equifax’s payment index examine how many payments your company has made on time, using a scale of 1 to 100. If you choose an Experian credit score, you will get more than your payment history taken into account. An Experian score will also add in multiple factors to gauge your business credit, including lines of credit you’ve applied for, new accounts you’ve opened up, lines of credit in use, and late payments.

Reports on your business credit can also produce scores that predict the future performance of your company. If you get a score from Dun and Bradstreet, they will offer you a financial stress score. This is intended to show whether your business is likely to have problems making payments on time by matching your business with other businesses of similar characteristics, such as company size or the length of time the business has been in operation. This score is meant to provide a broad look at the business landscape you are a part of.

A credit risk score predicts the possibility that your business can have severe deficiencies making payments. This score measures the size of the company, available credit limit on credit cards or other accounts, and delays in payments to non-financial institutions. A business failure score determines how likely your business is to close by looking at factors such as delinquent payments to non-financial institutions as well as the time since the oldest financial account was opened. A rating of 0 for either of these scores will point to bankruptcy as a likely outcome. Also, you may get a supplier evaluation risk rating. This indicates the likelihood of a business no longer providing goods and services.

Finally, it is always good to check over your credit report to make sure there are no errors or missing information. Credit bureaus may not receive all the proper information from vendors or financial institutions you have dealt with. Check with all parties involved to ensure your report on your business credit is as complete and accurate as possible.