We don’t have to tell you that there’s a lot that goes into maintaining and growing a business, especially if you’re in the construction industry. The extent of your equipment usually dictates the scope of the jobs you can take on, and the better your equipment, the better the work.

But if capital is the barrier to accessing this machinery, and you need the machinery to create capital, you’re stuck in a catch-22 situation. That’s where equipment finance comes in.

As a business owner, you have a variety of options for upgrading or expanding your range of construction equipment to enable access to better-paying or more consistent work. In this blog post, we’ll unpack the what, the how, and the why of financing your construction equipment upgrades.

Why Finance Your Construction Equipment?

Taking your construction gear up a notch is an investment, but it’s not always one you’ll have the capital to make outright. Paying upfront can throw a wrench in your cash flow, which is why financing is such a handy option. It lets you access the equipment you need without tying up capital that you need to keep your day-to-day operations going.

There are a lot of reasons why tapping a commercial vehicle finance policy makes sense for construction business owners like you:

•         It keeps your cash flow healthy by avoiding massive upfront costs and keeping funds available for day-to-day expenses.
•         It lets you stay competitive, giving you access to top-of-the-line machinery to streamline your work.
•         The right plans are flexible enough to let you choose a setup that aligns with your cash flow and business cycles, especially if you choose something short-term.
•         Financing helps you access the right tools to expand your business when a pivotal client with the potential to inject some serious capital walks through your door.

Commercial Vehicle vs. Equipment Finance: Which is for You?

If accessing financing is the right path for you, you have two core options to choose from, so let’s explore what each one really means.

Commercial Vehicle Finance

Basically, if it drives, you’ll need vehicle finance. In a construction context, vehicles like trucks, diggers, earth-movers, and forklifts would slot neatly into this category. Considering new commercial vehicles like these can easily reach $100,000 or more, this option grants you the ability to spread the cost over time instead of paying outright.

Here are some of the vehicles you could finance with commercial vehicle finance:

•         Civil construction vehicles (both new and used)
•         Diggers and earth-movers
•         Forestry vehicles
•         Mining vehicles
•         Forklifts

Generally speaking, if you can drive it and use it for commercial purposes, it falls under this umbrella. For a more complete list, check out our commercial vehicle finance page.

Equipment Finance

On the other hand, plant and equipment finance is designed to provide you with capital to pick up any non-vehicle equipment you need to get work done. These pieces can also run very expensive, and upgrading these pieces can have a massive impact on the level of work you can offer your clients (or even open the door to larger clients).

Some of the pieces of construction equipment you could finance include:

•         Concrete mixers
•         Pallet stackers
•         Scissor lifts
•         Mobile cranes
•         Material handling equipment

While some of these pieces of equipment might technically have wheels, they don’t fall under commercial vehicle finance unless they are designed to be driven from site to site. For a more complete list, check our plant and equipment finance page.

How to Find the Right Policy for You

Now that we’re clear on your options, the final step is to get you in touch with the right policy for you. There are a few things to consider, but when we chat with our clients, we encourage them to focus on the big four:

1.     Lifetime – what policy length are you looking for?
2.     Equipment – what kind of equipment are you after, and what is the general price range you’re comfortable with? Do some research into both used and off-the-belt options to get an idea of a realistic price range for your business.
3.     Cash Flow – what amount are you looking to put up for the equipment now, and what amount do you need support with?
4.     Policy Type – are you after a short-term lease for temporary equipment, or are you seeking a more permanent upgrade that gives you immediate access to the equipment?

It helps to have a general idea of these answers before getting in touch with a commercial vehicle finance expert from our team, as this lets us match you up with the best policy for the job.

 Access top-notch loans for a variety of construction equipment through GVK Finance.

Our team has a network built over thirty years of financing businesses exactly like yours, and we’re proud to facilitate our clients’ access to a range of options for equipment finance. When you work with us, you can secure the perfect loan to upgrade your equipment while keeping your cash flow strong.

Browse our list of commercial vehicle finance or equipment options. If you don’t see what you’re after, you can get in touch with us to see if we can help.