Category Archives: Lease

One must keep in mind before leasing out heavy equipment

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We usually get to see companies looking for sellers or leasers who are will to sell or lease their heavy equipment but they very rarely find givers in the market. At the same time, there are many people who have heavy equipment in their possession that are lying idle as they are out of projects or because they simply do not have any use of those equipment. What ironical is that they just like to keep the equipment with them instead of leasing them out to prospective takers. They often have the fear that the buyers/takers will make extreme rough use without taking proper care of the equipment. This will result in early wear and tear of the machine and they have to eventually sell it off as scrap.

In order to counter the fear of theirs, we would be focusing on few pointers that will protect the interest of the leasers and also help them to make some money.

Make your terms crystal clear in the advertisement:-

Setting up your expectation is the first thing you must do before you let out your machine to anybody. If you want them to use your machine in a particular way, then it has to be in that way and no other way or else, the person using it will be liable to pay you for the damages as well. You also have to be very specific with your terms. There should not be any scope for ambiguity and your terms should be crystal clear to the reader. If you still get calls from people, it means that they have read and understood your terms and are ready to accept it. In case, you want to pass this message to them verbally, you can talk out to them while you meet them for the deal. This will give you a message to them that you do care for your machine and if they do not comply by your terms, they will have to face the music.

The rental part should be agreed on by both the parties:-

You should know how much you can expect as rent on a monthly basis. The amount should be mentioned very clearly in the contract. If you are ready for any sort of negotiations then that also should be mentioned in it. However, if you want to stick to the price you have decided then that should be it. You can state that people willing to take the equipment on lease should have no problem with the rental amount. They may check the item and if they find it to be appropriate then make no negotiation with the rent as that will not be acceptable.

These clear messages from your end will not give the prospects any second chance to think and will be left with 2 options. If they like the stuff, then take it or else leave it. Making an agreement is very important in these cases where the period should also be clearly mentioned.

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Decrease Expenses and make Profit by Leasing Excavators for Construction

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Excavators are heavy equipment used for constructing, mining, digging and moving huge unmovable objects. They are big in size and difficult to operate .On the construction site different kinds of equipments are required like scrapers, excavators, wheel loaders, bulldozers etc. The Excavator is perhaps indispensible equipment for its wide variety of applications. It is used for both constructing and demolishing a building. Leasing excavators is becoming popular by the contractors. Before renting, here are some tips to follow:

Funds

With a range of excavators available for lease selecting the right equipment is vital. Depending on the size of the project undertaken you should lease the equipment. If the construction project is small select a less powerful excavator but if the project is a big and complex one then a heavy and powerful excavator is essential. It is important not be over budget so that you are able to meet other construction expenses. It is important to select a leasing company that suits your pocket and provide cost effective services. Prepare your budget according to your needs. Always remember that you have other expenses too like land digging, clearing the construction site etc. If you are selecting to hire a contractor, know the expenditures involved in it.

Goodwill of the company

There are plethoras of companies that offer excavators for lease. It will be shrewd that you always opt for a reputed leasing company with good feedback and encouraging reviews. You should ensure that you don’t land in any kind of problem which proves to be expensive later. Always do research online and make comparisons with other leasing or renting companies, Read reviews thoroughly that are available on sites. Also look for those renting companies online that offer good customer support for 24*7 such as quick responses to your queries, providing toll free phone numbers for conversations etc.

Excavator Rental or Leasing Costs:

Excavators can be rented for stipulated time. It can be availed on daily, weekly, and monthly basis. If the excavator is big and powerful it will cost you more money for leasing.

  • Every day charges of renting vary from $350 to $1,600 or more. Below that price you can access to a less powerful excavator.
  • Monthly rates begin at $3,000 and can go up to $15,000 or more. An excavator with middle dimension of 45,000 pound would cost $6,000 to $7,000 monthly for renting.
  • Excavator rented on weekly basis charges around $1,250 and can cost up to $5,000. For lesser price you can get a 17,000-pound small equipment.
  • Construction activities have undergone drastic changes in recent times. Today constructing a project takes four months to complete. This is due to availability of heavy construction equipments like Excavators, Tractors, Scrapers, and Loaders etc. for leasing. These days’ heavy construction equipment are technologically superior and upgraded requiring less time to complete a construction project. They are beneficial to a user since they consume less fuel and are versatile and efficient in carrying out all the activities of construction such as cleaning, grading and demolishing a site.

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Best Options for Leasing Heavy Equipment for Construction Industry

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With the increase in construction projects the demand for leasing construction equipment has also increased tremendously. Construction industry is labour intensive as well as capital intensive. The contractors also need to use complex and diverse equipment such as Tractors, Excavators, and Loaders etc. Construction activities are numerous and diverse. Contractors have to manage and bring all the factors of production together such as land, labor, capital etc. Cost of all construction projects is an important factor .The contractors nave to control the budget and coordinate competent project supervision. Construction equipment are costly and the maintenance and repairing costs are also high. Specific heavy equipment requires qualified and skilled operators. Smaller contractors face financial constraints to buy heavy equipment since their budget is fixed. Bigger contractors lease or rent heavy equipments to be cost effective and also get the appropriate equipment for construction purposes.

Leasing is a lucrative option for both large and small contractors to cut down their expenses in construction projects. But there are several factors to consider before leasing heavy equipment.

 

Capital: When a contractor, project manager purchases new heavy equipment, they need to find out what are the best options available to them. The heavy equipment tend to decrease in value with daily wear and tear. So instead of making huge investments in buying them it is the best option to lease the heavy equipments to conserve money for unforeseen needs.

Equipment Supervision: Another factor to consider before leasing heavy equipment is equipment supervision. Heavy equipment such as scraper, cranes, excavators, loaders, rigging equipment are very costly. You need proper maintenance as well as dexterous operators to run them well. You may also require utilizing the professional operators to supervise the equipments and legalize their use.

Government Strategy: Government policies are important to consider before leasing heavy construction equipment. The government has laid down certain safety and security instructions regarding the superiority of the machines to be used in the construction site.

In the case of leasing, a contractor can ask for subtraction for the full price of the heavy equipment from the taxable earnings. Capital grants can be asked for the total price of the assets if you are leasing it for a time period of more than 5 years. In certain cases time period of 7 years is mandatory.

Wrap Lease: This leasing contract allows the contractors to merge some lease payments into a single, usual payment. This is an appropriate option for those building contractors who need to lease heavy equipment all of a sudden. Leasing combines their outstanding expenses and they can use it to invest in leasing new heavy equipment. This is extremely useful for those building contractors who are undertaking colossal and complex construction projects with volatile requirements and difficulties.

Fair Market Value Lease: Fair Market Value Lease is an extremely vital factor when you are considering leasing heavy building equipment. This option is beneficial in that case where there will be a fast decline in the value of the equipment due to usual wear and tear as a result of constant daily use. The repairing costs can be high too. These days a number of leasing companies are supplying services of expert workforce at no cost for performing maintenance and repairing work.

So leasing heavy equipment can be can be tricky task. Several factors have to be kept in mind before you make your decision to lease it. The article will give you all the information you need before leasing.

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Advantages and Tips of Leasing Heavy Equipment for Construction and Mining Projects

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These days leasing of heavy equipment is considered to be a money saving option without compromising on the quality of the equipment. Both for short term and long-term purposes leasing can be the best option for the contractors and project managers in the construction or mining site. It has numerous benefits and advantages. Some of the outstanding benefits of leasing are as follows:

Leasing is cheap: If you don’t have adequate capital for spending then leasing is an excellent option. It will help you to get the heavy equipment you want. In case you need to upgrade your existing heavy equipment for an upcoming construction project you may need to spend hundred and thousand of dollars from the bank. If you consider leasing the equipment it can be cheap and less expensive.

 Saves capital for future:  It is not a shrewd idea to invest massive capital in purchasing new equipment. You need to save your precious money for unforeseen emergencies, economic downturn or in case of recession in the construction sector. Leasing is the best method of preserving money for future use and put together your capital for other activities. You need to make monthly payments for leasing a heavy machine or equipment for construction. You can avail small business credit from banks for financial assistance. So it is hassle free and helps you in preventing exhaustion of your cash.

Equipment leasing is also beneficial in cutting down operational expenses of the heavy equipments and finishing all the construction projects in stipulated time.

Helps in saving taxes: Under section 179 leasing gives you reduction up to $50,000.You need to discuss this matter with your tax consultant to avail this benefit. Your construction equipment you have taken for lease must come under this section so that you can avail tax benefit.

Tips of Leasing Heavy Equipment for Construction and Mining Projects

 

Research on which equipment you need: Compare the various kinds, brands, dimensions and models online to land with the best equipment. Research is important, as it will give you information on the various leasing or rental companies that provide tractors, scrapers, excavators, loaders, bulldozers etc.

Figure out how much time is needed to hire the equipment. The time period of renting heavy equipment spans from day by day, weekly, and monthly basis. So get to know in how much time you will get the equipments for hiring.

Use websites like RentItToday or Equiprent to find the least possible prices of renting equipments: They present leasing quotes free of costs for the heavy equipment you require. Apart from these websites you can get information from the Yellow Pages or use Google for searching.

Give back the equipment in time and in good state to avoid extra fees: Make sure you return the equipment in top condition without slightest damage.

To sum up leasing and renting a heavy equipment can be a daunting task but hiring it is beneficial for both small and big contractors in many ways.

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Tips to start a leasing heavy equipment business

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Nowadays, leasing heavy equipment business is booming. It is gaining a strong hold in the competitive world of business because of its features. Most of us who are acquainted with constructional works want to have the equipment in good condition while at the same time don’t want to invest a huge sum in that. Do you too want to start a renting heavy equipment business? Don’t know how to start it? All the businessmen should work very hard along with little calculation to establish their business properly. Are you looking for some tips on how to start the business? Okay, just check out the following article.

Tips to start heavy equipment renting business

  • Put up with the distributors of equipment to get the prices of dealers on their constructional equipment. Most of the agreements include a form fill up where you have to give every information regarding your business. You have to hold with them for a specific period’s minimum purchase which can either be on an annual or one-time basis.
  • Get the coverage of insurance. Leasing equipment means taking the responsibility of the person who is going to rent the equipment from your company. You should have enough insurance coverage to help the person in case he is injured while using the equipment.
  • Write down the renting agreement. It should encompass a liability setting aside as well as the terms and conditions such as rental time, price and the returning condition of that equipment. You should also mention in your agreement form whether you are going to demand any money from the leasing person in case any damage occurs to the machine.
  • Before you set the leasing rates, look for the rates which other renting companies are offering. It will enable you to fetch the best price. Try to set the rate properly which should be neither too low nor too high to attract more customers.
  • Are you thinking how you are going to maintain the equipment? Just relax. Technicians are available in the market who can take care of your equipment. You only have to spend some money in hiring the technicians. Don’t forget to scrutiny all their documents properly to avoid any kind of problem in the future. Try to get a well-trained technician who can repair all types of damages efficiently.
  • At last, focus on building your inventory. Set in with a fine collection of famous rented heavy equipment such as concrete saws, front loaders, sand blasters, bulldozers and the like. Try to store as many equipment in your company as you can so as to provide the customers with a greater choice.

A good rule of thumb is to deal only with the sources which will be of financial help to you. But, that financing source must have worked at least as long as the lease term. And yes, get little picky when it comes to deal with the terms. Go ahead and flourish your business using the tips.

How to start Heavy Equipment Leasing Business

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With increase in construction and mining projects worldwide the demand for leasing heavy equipment has increased tremendously. Starting a heavy equipment construction business can turn out to be a lucrative enterprise considering the fact that you know the tricks. According to the USA based Equipment Leasing Association almost 80 % of the businesses in America requires the heavy equipments. So it is evident that heavy equipment rental contributes largely to a company’s success. Hiring heavy equipment is an attractive proposition for companies as they get their desired equipments without spending huge money. Here are a few steps which would be beneficial for you to start the business of leasing heavy equipment. Read it carefully:

Create a Proper Business plan

Firstly decide whether you want to lease heavy construction equipment like Bulldozers, Tractors, Excavators, Wheel Loaders etc or smaller equipment. Add information on monetary projections and revenue statement including balance sheet and cash flow report. Also do not forget to mention what are your plans to surpass your competitors.

Find a suitable location:

Choose a warehouse or a spacious office to conduct your business. The location should be appropriate for your business and cater to your needs.

Look in to your budget:

Look into your funds and spend it accordingly. It is essential that you purchase the right heavy equipment so that it maximizes your profits and productivity. Do extensive research about the various heavy equipment available in the market as well as online. It will help you to acquire information about the latest equipment with upgraded machine technologies. It will also provide you education about which equipment will cater to your needs and which will be suitable for your business.

Buy the heavy equipment to be used for leasing

It is important to invest wisely in the buying procedure of the heavy equipment that will be leased. Quality should come first as the equipment should be able to endure daily wear and tear. You can avail loans from commercial banks if you do not have adequate money. The equipments should be robust and long lasting so that it can be leased and rented to numerous customers or heavy equipment users.

Make good publicity of your business:

In this era of globalisation and dynamic business scenario competition has become part and parcel of every business. To make sure that your rental business reaches to wider customers it is important that you get good publicity. Advertising on Radio, Newspaper and TV are effective and powerful promotional mass media and will help your business to reach larger customers worldwide. These days internet or online marketing can give you good exposure and that much needed publicity. It will help to create a brand image about your business.

Over the years leasing of heavy equipment have been preferred over buying. Considering it is a capital-intensive business it is a safe option to lease them. The article will give you all the information that you need to commence heavy equipment leasing business.

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How to Sign a Profitable Heavy Equipment Leasing Deal

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A money-spinning heavy equipment leasing agreement can create the difference between trailing money and acquiring it. Recently, the scholar economists in their survey reported that most of the financial institutions are rejecting the bank loans due to inflation. Confronted with several other alternatives, then it’s prudent to attain your business equipment by letting since most of the organisations proffer this service without asking for your pecuniary statements.

Renting paraphernalia is conceivably the most significant method to trim down the cost of construction. Rather than disbursing a huge amount to the weighty apparatus manufacturers, the heavy construction equipment letting firms require predetermined monthly imbursement. Furthermore, the balance sheet of the construction corporations never displays the renting equipment on the assets column. This hiring service assists the companies to sustain their commerce credit. However, before you sign an accord with the heavy equipment renting company, there are some factors that you should keep in mind. Those components are mentioned below. Just check it out –

High Residual Value 

The key factor of any cost-effective equipment renting agreement is high residual value. When we define the actual meaning of residual value, we can say it is an apparatus’s anticipated value determined in the last part of the lease period. Generally, the renting data providers or the banks appointed by the lessor decide the professed value of the heavy equipment. The soaring residual value helps the construction and mining companies’ owners to disburse low monthly renting fees. When you fully understand the importance of the elevated vestigial value, it will be much easier for you to understand the difference between renting of two similar paraphernalias. For instance, if the depreciation rate of a letting apparatus is low, then the monthly leasing fee also decreases.

Cut-throat Interest Rate

A higher residual value will never confer a cost-effective heavy equipment leasing agreement if the interest rate of the underlying concern is not competitive. It is advisable to become acquainted with the letting sales terminology. The dealing terms of procuring heavy equipments are completely different from the leasing ones. The bulky apparatus renting organisations refer the interest rate as ‘lease factor’ or ‘money factor’. If you unaccustomed with the leasing sales terms, then the proficient broker or the finance manager of the trustworthy construction machine vending companies helps you to find out the best interest rates. Furthermore, the finance manager checks the agreements already signed by you.

Low Fees and Punter Retention

If the lessees want to get better renting agreements, they can request the heavy equipment renting concerns to lessen some amount of fees from the deal. Moreover, they can shop other leasing companies that proffer heavy equipment in lowest fees. Every weighty apparatus letting corporation wants to satisfy its clients by fulfilling their demands. The leaseholders can go through the feedback of the customers in order to know the performance of the renting company.

Finally, if the heavy equipment leasing accord does not permit you to reassign the rent agreement to anyone else, it means that there are better deals waiting for you in the future. Presently, leasing firms are proffering flexible and profitable accords to the construction and mining companies. It is your responsibility to choose the right one.

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Heavy Equipment Lease Application Form Fill Up Process – Is It Time Consuming?

The process of filling heavy equipment lease application form does not take up a lot of time. Yet, you should need to be prepared intensively and methodically before you fill the lease application form. It not only saves your valuable time but also helps in forestalling the delays during form fill up.

Majority of the clients of any heavy equipment leasing company are industrialists and businessmen. May be this is the reason why one of the most frequent questions comes in the mind of business tycoons regarding the time takes for claiming heavy equipment in lease. Usually, the entrepreneurs are very busy and drawing out time for filling lease application form is not an easy task for them. But, here is good news for those busy personalities that nowadays, equipment rent form filling procedure takes very short time because of the advent of internet. Why the applicants should focus their time in arranging the data requisite for heavy equipment hiring form? Here in the below discussion you will get the answer in detail. Just go through it.

Application Form Depends on the Type of Heavy Equipment

Before you select your desire leasing company, it is necessary to understand the particular paraphernalia suitable for your purpose. Often the weighty apparatus renting firms asked the construction and mining companies to show their equipment vending written requirements and if the companies submit the data in time, it will take only a few minutes to accomplish the process of form fill up. Moreover, the apparatus leasing corporations enquire the clients about their future plans in business development. The application format of every renting company is not same. Therefore, it is sensible for the capitalists to go through the website of the renting concerns because there they get to see the layout of the submission form. For instance the data required for leasing an excavator is entirely different from the dozer.

Essential Documents for Equipment Letting Application Form 

Prior to the form filling procedure, the industrialists must collect all the important documents for the application method. Here in the below mention points, some of the basic documents demanded by the leasing firms are given:

  • Full name of the possessor
  • Sponsors of the enterprise
  • Federal tax ID
  • Social security number
  • History of the company
  • Contact address of the head office and branch office

Conditions in Bulky Paraphernalia Application Form

Once the mining and construction companies sort out the issues of financial related matters with the apparatus leasing companies, now they have to choose the term period for the particular heavy equipment. Usually, most of the letting organisations provide their clients with two sorts of term periods – two years and four years. If the traders select the four year term, then the monthly hiring disbursement amount is less. It is a vital decision so as to avert the problem of cash flow.

The heavy equipment renting firms facilitate their customers with three assorted choices of end-of-term that are Fair Market Value, $1 buyout and 10% purchase. The industrialists should be careful in these matters when signing the agreement with the weighty apparatus leasing organisations.