Construction Equipment Finance: Choose This Option for Your Projects

April 3, 2024

Is your construction company in a financial position to secure larger projects or add more clients? Small or inefficient heavy equipment may keep your business from achieving these goals. To obtain the newest machinery or large-scale equipment needed to elevate operations, you need a method to financially support acquisitions while minimizing impact to cash flow.

Financing a construction equipment purchase may provide a wealth of immediate and long-term advantages for your business that could lead to more growth opportunities.
Find out why your business should consider construction equipment finance options and discover the value in choosing Texas Gulf Bank as your lending partner for strategic funding solutions.

The Basics of Construction Equipment Financing

Business owners typically have three options to choose from when they need to acquire heavy equipment or machinery: paying for equipment in cash, financing with loan options, or leasing. Since many businesses do not have the available working capital needed to pay for equipment in full, an available option is to pursue heavy equipment financing or equipment leasing for their business needs.

Loans and leases help businesses to obtain equipment to scale their business without tying up liquidity in fixed assets. Rather, companies may realize financial flexibility to obtain the machinery they need while also protecting the working capital necessary for other operating costs and expenses.

In addition, companies that finance or lease equipment may experience additional gains by increasing productivity, reducing waste or redundant processes, and streamlining overall operations. Upgrading equipment and machinery can potentially provide tremendous cost savings that could offset the expense of leasing or financing construction equipment.

Construction financing options can be used to secure a wide range of equipment and heavy machinery, including:

Bulldozers
Excavators
Forklifts
Cranes
Drills
Jackhammers
Generators
Concrete mixers

Your business deserves the opportunity to move upward and achieve long-term success, and having the right kind of equipment and machinery can help.

Loan or Lease: Which Is Better for Your Business?

Thanks to a strong statewide economy, businesses throughout the Southeast Texas Gulf Coast region are poised to continue growing and developing the region. This means there is likely a greater need for construction projects using heavy machinery and equipment.

If your construction business needs equipment to keep up with demand, will you choose a construction equipment loan or a lease for construction equipment? Let’s review these two options.

Heavy Equipment Loan

A heavy equipment loan, also known as a construction equipment loan, allows businesses to purchase machinery or equipment through a lump-sum loan, repaying it through monthly payments. Once the loan is fully repaid, the equipment is fully owned by the business.

Businesses may realize several advantages by choosing a heavy equipment loan, including:

Ability to have large-scale equipment and heavy machinery for larger projects
Opportunity to build equity by owning equipment and machinery
Creation of a valuable asset on the company balance sheet once the loan is paid off
Additional benefits pertaining to your specific use of the equipment

Heavy Equipment Lease

Companies also have the option to lease construction equipment if they would prefer not to own equipment. Leasing may be an ideal solution if your business plans to use equipment less frequently or constantly needs equipment and machinery with the latest technology.

Leasing equipment allows your business to have the machinery and equipment needed to take advantage of growth opportunities without the long-term commitment of keeping the asset after the financing period is complete.

Leasing may also free up your working capital for other business needs for future business expansions, real estate purchases, or other business investments.

Texas Gulf Bank: Construction Equipment Finance Made Easy

We understand you have options to obtain the construction equipment needed for your business. Our local lenders are prepared to discuss your options including financing vs. leasing equipment – and discuss various solutions for your business.

With over 110 years of experience providing financing solutions to businesses across the region, we understand the unique needs of local businesses, especially in the construction industry.

We strive to cultivate strong relationships with each of our clients, and to provide strategic lending solutions coupled with our exceptional customer service. With our in-depth regional expertise and banking solutions, you can stay competitive by securing the equipment needed for new and bigger projects.

Getting Started With Equipment Financing

If financing an equipment purchase is the ideal solution for your business, we will be with you throughout the lending process. We take the time to understand your specific business goals, intended plans for equipment, and budgetary needs.

If your business is an ideal candidate for equipment financing, you will need to gather and prepare the necessary documentation for our lending team to review, including but not limited to:

Completed loan application
3 most recent years of business tax returns and financial statements
3 most recent years of personal tax returns and bank statements from guarantor(s)
Credit history and credit scores from the individual guarantor(s)
Current debt schedules
Detailed business plans
Financial projections
Equipment information
Business entity documents

Once all required documentation is submitted, the in-house loan review team at Texas Gulf Bank analyzes the funding request. We aim to provide a prompt answer on the path to providing you with financing for heavy equipment or large-scale machinery purchases.

Contact Texas Gulf Bank for Construction Equipment Financing Solutions

When your construction business is ready to elevate operations and take on exciting new growth opportunities, Texas Gulf Bank is the ideal lending partner for your financing needs.

To learn more about construction equipment finance options, call Texas Gulf Bank at 1-800-467-7216, use the contact form to reach one of our local lenders, or visit one of our many local banking centers.- To learn more about your options for commercial lending services from Texas Gulf Bank, subscribe to our email newsletter. You’ll receive regular updates about business loan options and the latest banking news directly in your inbox.

All loans subject to credit approval.