Business loans Grand Rapids

4 Factors to Consider When Buying Construction Equipment

Ezra Cabrera | June 6, 2019


    When operating a construction business, using the right type of equipment contributes to the success of your projects. However, high-quality equipment comes at a price not many can afford out of pocket. Most business owners opt to take out business loans Grand Rapids to help fund equipment purchases. This way, they won’t put a strain on their business’ finances by paying for these equipment out of their pocket.

    Related: Best Small Business Loans for Heavy Equipment Financing

    The right equipment can make the difference between success and failure of your construction company. As an owner, you are responsible for the safety of your workers and at the same time quality of the output of your projects. Mistakes are often made if you continue to use an old and outdated piece of machinery.

    If you’re looking to buy construction equipment, be sure you do your research to minimize errors and save more money. There are certain factors you need to consider before buying your construction equipment. For instance:

    1. Fuel Efficient Machinery

    It’s a known fact that heavy construction equipment cost a fortune. However, not many business owners know how expensive it is to maintain the equipment. We all know how important it is to take care of an equipment, especially if it’s an expensive one. Typically you’d need to shell out a significant amount of cash and set it aside in case your equipment need maintaining.

    Choosing fuel-efficient machines are an effective way of saving money on equipment maintenance. Construction businesses spend thousands of dollars on fuel, so choosing machines that consume less fuel will help you save money in the short and long run. It’s also environment-friendly, so you’d also be doing the environment a favor by choosing fuel-efficient equipment.

    2. Quality

    There will be times when you need to work in harsh weather conditions that may speed up the wear and tear, or even damage your construction equipment. When this happens, it can pose as a danger to your employees and compromise the outcome of your project. Whether it’s hail, snow, or constant heavy rainfalls, it can contribute to the quick degradation of your equipment, especially if it’s low-quality.

    Since continued exposure in harsh conditions can take a toll on your equipment, it’s important to invest in high-quality construction equipment. Good equipment is not only durable, but it should resist damage caused by an unpredictable environment and harsh weather conditions. Additionally, choosing high-quality equipment can also help you save on repair and maintenance costs. Prior to purchasing, don’t forget to check the quality and strength as well as warranty details of the construction equipment.

    If you can, scout equipment from different brands and ask the seller about them. Dig in deeper through research. You can also ask your subcontractor or other contractors what they think is the best equipment to buy. This will give you insights as to the best equipment to invest your money on.

    3. Price

    Construction projects usually take a long time before completion; some projects last for months, while others take years to complete. Business owners need to plan ahead and allocate sufficient funds and plan accordingly in order to maximize revenue and profit.

    Keep in mind that high-quality equipment with the latest technology can cost more than regular heavy equipment. Despite its price, it’s a far wiser investment to acquire quality equipment rather than substandard ones, as this is will certainly save you money on repairs and maintenance.

    On the other hand, if you’re planning on buying used one, the listing price shouldn’t be the same as the brand new one. Be careful of equipment priced too low, too, as it can have a lot of hidden defects. The appropriate price should reflect the machine’s condition. You should consider its operating time, model, and maintenance history. It helps to bring an expert along to help you look at the equipment before buying.

    4. Dealer

    When buying expensive equipment, be extra sure to do business with reputable sellers. Research potential dealers online, read reviews and ask for recommendations from friends and partners. As you search for the best dealer, don’t hesitate to ask as many questions as you need to in order to determine the best course of action for you. Experienced sellers will be able to answer your questions in full regarding the equipment and overall buying process.

    Get Business Loans Grand Rapids to Fund Your Construction Equipment

    Equipment can make or break your construction business. However, obtaining one can be expensive, especially if you’re planning on buying brand new ones. Construction equipment can break your bank if you decide to finance it out of your pocket. Fortunately, that isn’t the only choice contractors have. They can turn to business loans Grand Rapids to help cover the costs of buying equipment. With the extra cash, they can obtain equipment, invest on opportunities, and speed up the growth of their company’s growth.

    Related: How Equipment Financing Helps Small Business Owners

    About the Author

    Ezra Neiel Cabrera has a bachelor’s degree in Business Administration with a major in Entrepreneurial Marketing. Over the last 3 years, she has been writing business-centric articles to help small business owners grow and expand. Ezra mainly writes for SMB Compass, but you can find some of her work in All Business, Small Biz Daily, LaunchHouse, Marketing2Business, and Clutch, among others. When she’s not writing, you’ll find her in bed eating cookies and binge-watching Netflix.