How to Expand Construction Capabilities in Limited Capital

Construction equipment and machinery are expensive to purchase, insure, service, and maintain. Basic equipment is needed to start a business, which is usually purchased with start-up capital or a business loan. Beginning to build up a business using already procured machinery provides a great start, but there will come a time when expansion may be necessary to remain competitive. Bidding on certain contracts, for example, may require specific equipment that is not among the business assets. One way to expand construction capabilities is to rent the precise equipment needed to fulfill that particular contract. Backhoe Rental in Baltimore MD for a day, week, or a month may be the answer. When the contract is over, the equipment goes back to the rental company.

Backhoe Rental in Baltimore MD can also be a way to try out different manufacturers and models to decide which type will best suit the business needs. Rent a New Holland model one month, and switch it out for a John Deere model the next month. Try out different attachments as well to get a feel for which handles better, which is more versatile, and which compliments the rest of the fleet of machinery. Operators can work with the backhoe, provide input, and help make the best decision. That will make the investment suit the business preferences, needs, and budgets. Comparison on job sites is much more conclusive than test driving each model. Having first-hand experience with the model chosen will justify the expenditure, and help make a case for the approval of a small business loan, or third party asset financing.

Another option to expand the capabilities without making a new purchase is to lease the equipment. Most rental companies also offer long term leases. The lease payments fall under operational expenses, so there are no taxes placed on the equipment, which saves the business money. Leasing contracts require a minimal down payment, so it is easier to handle the initial expenses and the monthly payments. The business can put in lower bids for contracts, which results in getting more contracts. When business owners are ready to make purchases, they can usually work with the same company. A lot of rental companies also sell new and used equipment, machinery, and supplies. Construction business owners can go to slaymakergroup.com for details on all services and options available for equipment.

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