Financing Earthmoving Equipment

Earthmoving equipment and machines are among the most important items used during construction and demolition work. Depending on the type of operation you are running, there are financing facilities that you can study and choose from when acquiring or obtaining earthmoving equipment for a project.

When choosing the type of contract or deal for obtaining an earthmoving machine, it is best to consider the frequency of the usage and requirement as well as the cost that goes along with it. Just like all other items that depreciate in value, excavation machines can fall under equipment financing. Here is a quick summary of your choices.

Equipment Loan

With this deal, you get to own the equipment that the lender will finance. You will then make regular repayments to cover the cost of the equipment plus interest charged by the lender.

Hire Purchase

This deal is a slightly similar to the equipment loan deal where, as the borrower, you make regular payments during a specified loan term. Once the entire loan has been paid, ownership of the equipment is turned over to the borrower.

Lease

Under a lease agreement, the financing entity holds the asset and you rent the equipment for a specified term. At the end of the lease agreement, the lessee will pay an agreed amount to finally own the equipment.

Rent

The equipment rental agreement is much simpler. In this agreement, the borrower does not get ownership of the item but simply rents the equipment for the duration of the agreed term. When the rental period is over, the borrower is not entitled to own the equipment. Rather, the borrower can choose to renew the rental agreement or return the equipment and end the rental agreement. The borrower may also return the equipment and ask for a better unit for which there will be a new agreement.

When it comes to excavation equipment, more often than not, renting is the best option. This is mainly due to the high cost associated with purchasing or even buying it over a period of time. Of course, if you are running a construction firm, it will make more sense to purchase the equipment through loans.

For rentals of excavation equipment, Dee-Gees Bobcats would be a good choice. The company offers reasonable rates for rental of its top quality excavating machines. The company can also provide operators of the machine upon request.

To find out more about Dee-Gees Bobcats equipment for hire and the associated rates visit our website.