Why Should You Consider Construction Equipment Financing?

When many businesses start out, they need to invest a lot of capital before making a profit. This can be very difficult in the construction industry because construction equipment is expensive. Many construction businesses are unable to expand their business due to budgetary restrictions. Thankfully, there is a solution. With construction equipment financing, your small business can get a loan for construction equipment. At 504 Capital Corporation, we have helped small businesses grow and increase their profit through our heavy equipment financing in VA, NC, and MD.


Benefits to Construction Equipment Financing

There are several benefits to construction equipment financing. These benefits include maintaining capital and cash flow, purchasing updated equipment, reducing financial risk, and flexible financing options.

Maintain Working Capital

If you are a small business just starting out, you may not have the high amount of capital to purchase heavy equipment outright. That shouldn’t prevent you from opening and starting a business. Instead, you can finance your heavy equipment and use that capital for other business needs. Similarly, if a construction company has been in business for a few years but is looking to purchase equipment, they can use a heavy equipment loan.

Updated Equipment

In addition to maintaining working capital, construction equipment financing allows businesses to stay up-to-date on the latest technology. Many companies avoid purchasing high-quality heavy equipment because they don’t have enough money. However, in the construction industry, your equipment is the lifeblood of your business; if it breaks down or doesn’t function properly, you miss out on profits. With construction equipment financing, you can stay up to date on the latest heavy equipment available and invest in high-quality equipment that will last.

Reduced Risk

Purchasing a large piece of heavy equipment with your saved capital is a considerable risk. If the equipment breaks down, doesn’t function, or becomes obsolete, you must deal with the consequences. When you finance equipment, a lot of that risk goes away because you have saved capital to keep your cash flow going.

Flexible Financing Options

There are many ways that you can finance your heavy equipment purchase. Some heavy equipment manufacturers have financing available, and banks will also allow you to finance the equipment. However, the best option for construction equipment financing is a small business loan. An SBA 504 loan provides you with the money you need to make a heavy equipment purchase.

Using a 504 Loan for Equipment Financing

A 504 loan is a small business loan designed explicitly for purchasing equipment. Unlike traditional banks and manufacturers, a small business loan can provide low interest rates and extended repayment terms. Commercial loans offer five-year periods, while 504 loans offer 10-year periods. Similarly, some 504 lenders have an Accredited Lenders Program designation for Certified Development Companies. This means they can provide an expedited lending process that gets you money quicker. These can be beneficial when you are starting out and even once you are an established business.

Construction Equipment Financing in Virginia

504 Capital Corporation is a CDC serving Virginia, North Carolina, and Maryland. We offer heavy equipment loans in VA and the other areas we serve. Thanks to our construction equipment financing, we have helped many construction companies grow and stay up to date with the latest technology. If you are interested in applying for a 504 loan, 504 Capital Corporation is the place to go. Our lending officers are dedicated to helping your business succeed. As a result, we use our skills and knowledge to provide you with the expertise you need.

Ready to apply? Contact us today and see how we can help.
Location: 501 Independence Pkwy # 330, Chesapeake, VA 23320, USA

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