Construction Equipment Leasing Can Significantly Increase Leverage
March 8th, 2010 . by adminDepending on the nature of the construction equipment operation, the amount of capital required can be substantial.
Consider the example of road and seware construction where the required equipment can easily run into the millions of dollars. To be able to assemble the required equipment, the business is going to likely have to secure significant leverage of its equity investment. The total leverage may need to be greater than 5 to one.
The best way to acheive this is through construction equipment leasing. Through lease financing, many times assets can be acquired at or close to 100% of the purchase price of the asset.
