2014 Shorts of Construction Financing


2014 Shorts of Construction Financing

The U.S housing market experienced a resurgence in home construction in 2013. Although it seemed as though the rebound of the housing bubble had finally come, many businesses are being very cautious in re-entering related markets. This is especially the case in the construction industry.

Instead of going headlong into spending due to the promise of last year’s growth, construction companies are testing the waters with safer spending. One major way they are doing this is by utilizing short-term leasing strategies.

Short Strategy

In times past, construction firms used 72-month (or longer) leasing plans frequently. This made sense because business was exploding and construction equipment was often put on waiting lists. After the housing collapse, companies have learned that they cannot risk such long-term financing exposure. Short-term construction equipment leasing presents construction firms with the soundest business finance plan currently.
We’ve seen record highs in firms requesting 18-month leasing on needed equipment. Additionally, most of them have decided to finance specific projects opposed to the older practice of adding equipment inventory to their organizations. The “short strategy” also involves selling old heavy equipment inventory to increase working capital. Construction firms understand that a lack of working capital can severely limit its ability to compete—especially due to bank lending freezes.
Strada Capital is available for nearly any style of construction equipment financing. Our financing has saved our customers thousands of dollars while allowing them to remain liquid. We can help your firm with a short-term leasing strategy that is more conducive to modern markets. If you would like additional information about applying for financing fill out this short application. STRADA Capital is also a provider of truck leasing and a variety of business equipment leasing.

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