On the contrary, the disadvantage is that buying an equipment instantly decreases the working capital.
The key thing to remember when buying an equipment is to find jobs and keep the work going.
15. Leasing Equipment
Leasing a construction equipment is like using the machine for a long term while not having to make an initial down payment.
To put it in a different way, a user makes period payments, depending on the vehicle’s utilization.
Before buying or leasing an equipment it is important to play smart and by the rules of Federal Requirements for construction.
In this detailed construction equipment guide, you will learn that leasing an equipment had only advantages regarding costs.
For instance, leasing it for an extended period of time, as a user, you are avoiding the ownership costs which soak up the working capital.
Another example is that, the users monthly payments cover the operating costs and thus, provide a reasonable profit.
16. Renting Equipment
Renting an equipment is also reasonable according to the last construction equipment guide. However, it is highly preferable to rent only for shorter periods of time.
