Construction cranes are costly industrial equipment. Only the leading construction companies can afford large and sophisticated construction cranes. Companies that specialize in huge constructions and gutter installation Fairfax VA must have cranes to enable them to lift the construction materials while at work. The high cost of acquisition is made worse by the fact that the company has to train its employees on how to operate the equipment. Other additional costs of repair and maintenance mean that small construction companies, especially the startups, cannot be able to purchase their cranes. Here are some cheap alternatives that companies can use to buy their construction cranes.
Leasing is one of the traditional methods that companies have been using to acquire assets. A lease agreement involves getting a piece of industrial equipment for a particular period while paying an agreed amount per month or annually. Leasing is a cheap alternative as it does not require organizations to pay upfront costs to get the equipment. Depending on the lease agreement, repair and maintenance might be done by the lessor, which lowers the expenses of the company. Additionally, the lessee might acquire the property at the end of the lease period at lower costs.
Renting on a need basis is another alternative that construction companies can use to get a construction crane. Some organizations don’t need a crane on a daily basis, which means that they don’t need to buy one. This means that they will only be required to rent the crane on a need basis. This is a cheap alternative as there are no maintenance and repair costs because the item is probably rented for not more than a week. In fact, many organizations have highlighted that it is cheap to rent a construction crane than acquiring a new one due to the taxation costs involved.
Hire purchase is another option that construction companies can use to acquire cranes for their construction activities. This strategy involves getting an asset from a company after paying an agreed amount of money. The other remaining balance is supposed to be paid over an agreed period through installments. This is a cheap alternative to acquiring cranes or other construction equipment from dealers. The problem is that hire purchase option might prove to be expensive on a long-term basis. Moreover, not many companies around the world prefer selling industrial equipment on hire purchase.
Buying used cranes remains to be one of the cheapest methods of acquiring industrial equipment and supplies. Some organizations dispose of construction cranes due to minor repair issues that are not grave enough. This means that small construction companies can easily acquire such structures and use them to enhance their construction activities. There are many dealers out there who specialize on selling used construction cranes.
Loan financing is another feasible solution that companies can consider when they want to purchase construction cranes. Banks provide loans to companies at a lower rate, especially when the companies are buying capital items. One of the benefits of this method is that governments don’t tax expenses on capital items which will lower the company’s taxable income. It is evident that the construction crane will pay for the loans as it is used by the company to create wealth.