It’s been said that one man’s loss is another man’s gain. This statement is certainly true of equipment leasing and finance. Construction companies may have to figure out how to survive in the off season, but in more recent years, owners haven’t been taking time off. They’ve been finding unique ways to save and to make money.
These unconventional strategies have turned them into anything from impromptu storm chasers to auction hounds. This article will review some of the current construction trends and how unsecured funds are helping fledgling companies with equipment leasing and finance.
Learning to Wear Many Hats
Construction has never been an easy gig, but it’s lucrative, competitive, back-breaking work – if you can get it. Company owners will be the first to argue that job security is a challenge.
Like landscapers and contractors, construction has a limited window of opportunity. It’s becoming more commonplace for companies to bid on out-of-state work in different regions of the country. This helps them extend their operating season by a few more weeks or months each year.
Chances are, if an owner’s not securing an extended contract, s/he is looking into creative means of equipment leasing and finance. The latest crop of deals in this department come from repo auctions.
A New Kind of Storage War
A financial down turn is always a risk in seasonal occupations, but it also comes with a silver lining. Companies in need of heavy equipment can buy repossessed property for a price well below retail value.
This is what a win-win situation looks like. The companies stay in business and the bank recoups a profit from a loan default. How does this win-win collaboration work? There are four ways these purchases are set up:
- A third party representative arranges the sale
- Online auctions
- Live actions
- Equipment is sold at a set rate
No matter the avenue you choose, all equipment should be inspected by you, the business owner, a trusted representative, or a reputable local mechanic. The items offered are usually in good working order, but it’s better to be safe than sorry.
There is a short, but vital to-do list you need to complete before buying or bidding on repo equipment:
- Make a list of what you need and keep an eye out for the items. Inspect every match you find. Heavy equipment is hard to come by, so don’t miss an opportunity to get a good deal.
- Get the product specifications on any items you can’t see in-person. Decide if repair costs are worth the purchase price.
- Find out about the terms of sale, fees, bank approvals and extensions before you bid or buy.
- Secure the funding before attending any auctions. Whenever possible, have the means of payment on-hand and ready to go.
Unsecured loan options through the Advance Funds Network (AFN) can help with your equipment leasing and finance needs. The funds are unrestricted, so it’s a great resource for off season deal hunting.