a LeaseWorld.org original produced by John Elliott of Jocova Financial
Equipment leasing is used by many property maintenance and landscape companies to acquire the snow removal equipment they need to service their clients. This is largely due to the numerous benefits and easy process equipment leasing affords when compared to other financing options.
As the winter and snow removal season approaches, it is time to review any new and existing contracts and jobs that will need to be serviced this season and what equipment you have available to do the work.
Five Overlooked Things You Should Know Before Signing an Equipment Lease
For snow equipment considerations, it is important to ask yourself some key questions:
- What equipment will be required by my business in this up and coming season?
- How will the equipment allow my business to not only do the job, but do it better and more effectively & efficiently, and deliver more value then my competition?
- What will the return on investment be on the equipment such doing more in less time, additional revenue, eliminate breakdowns, additional contracts, etc.?
- How will my customers benefit?
- What kind of services will be performed and how often?
- How will I pay for the equipment?
Get the Best Equipment Financing Options Now
When it comes to having the right equipment to meet the demands of each snow removal season, you have a lot to consider. You want to ensure you have the proper equipment to perform the work required by your clients and contracts. This process requires an analysis and understanding of your operation and the customers’ properties you maintain. Once you have decided on the right equipment, the next key question is how should you finance that equipment. There are several options available such as cash purchase, bank loans, and lines of credit, but none are as business friendly as equipment leasing because of the financial benefits.
ProTip: Ensure you have top performing equipment to avoid breakdowns in the middle of the night.
Avoid the upfront cash outlay and make easy monthly payments for the equipment as you collect revenue from your contracts and work. Don’t forget to consider seasonal payment options which can match your lease payments with your revenue streams in the winter months and leave you with little or no payments in the off season.
Additionally, equipment leasing increases your buying power so you can get the right equipment that will serve you as you scale up your operation versus having to acquire equipment that fits into a cash purchase or capital budget over a longer period of time.
Relying entirely on paying cash instead of leasing, may not only limit your flexibility on purchasing certain equipment you need to operate effectively, it may also restrict you from bidding on certain contracts because you don’t have the equipment needed or the means to purchase the equipment to meet the requirements of the contract.
ProTip: Save your cash for breakdowns and repairs and/or salt & sand purchases. Winter can be very unpredictable and you want to ensure you have the cash flow to keep up. Equipment leasing allows you to hang on to your cash and still get the equipment you need.
Other key benefits of leasing to consider include: cash flow management, payments matched to revenue, keeps your cash in the bank, overcomes budget issues, and ensures you have the best equipment for the job.
See Related Article on the Top 10 Reasons to Use Equipment Leasing For Your Next Equipment Purchase
Commonly leased snow equipment includes, plows, blades, salters, spreaders, tractors, trucks, ATV’s, Side-by-sides, skidsteers, snowblowers attachments, melters, graders, loaders, trailers, excavator, and more…
Highlights of Leasing Snow Equipment:
- Use equipment leasing to get the best equipment for the job
- Secure contracts that have certain equipment requirements
- Save you cash for unexpected expenses such as repairs
- Pay easy monthly payments by matching cash flow to lease re-payment
- Customize your lease structure for seasonal payments only