It is pointless to acquire an asset and make no use of it. As long as the asset is of some use to you or generates some sort of income it can be called as an asset but the moment you keep the stuff without gaining any monetary benefits in return or do not use it at all it no longer remains an asset and has every chance to turn into a liability. Heavy equipment is a much needed requirement in the entire construction sector. However, you do not need one machine to do all types of work. This means that once your need is done with the heavy equipment it will remain idle for months. The best way to generate income of the idle machine is rent it out to people who will make good use of it and will also pay you money for using the machine. You will come across lot many people who will be ready to pay you handsomely for using the heavy equipment. It is because no one wants to spend a fortune in buying a machine and then keep it idle once they see the use of it is over.
The market to rent used heavy equipment is big. You have multiple avenues through which you rent your heavy equipment. You can catch hold of a broker or a company that deals with renting heavy equipment, list it online on heavy equipment portal or simply check out on your own and see if you get hold of someone who is interested to use heavy equipment on rental basis.
Heavy equipment broking companies:-
These companies deal with buying dilapidated heavy equipment and then refurnish it by changing its vital parts and once that is done they either sell it off to new customers or let-it out. They buy those old heavy equipment at a comparatively lower price and give it a new life by changing the entire look of the machine and adding few additional features thus also increase the price of a completely junk item. Once that is done they do not see hassle in letting it out to small construction companies. These guys can be approached if you want to let out your heavy equipment. The machine need not be with them but you can hand over the pictures of the stuff to them and they in turn will find the guy who wants it on rental basis.
List the heavy equipment online:-
There are plenty of online portals available that deal with letting out heavy construction machineries. They charge a nominal fee to provide the online service. All you have to do is list the machine after putting some pictures of it on the portal. Provide your contact details so that interested prospects can reach you and come to inspect the machine at a time convenient to you. If they like to go with it, you should prepare an agreement that would state all the necessary clauses and should be signed by all the parties.
A construction jobsite will give us the picture of laborers working tirelessly with their supervisors directing them to work and several types of heavy equipment digging deep inside the ground and rest busy carrying something or the other. Overall we will find nobody being idle. Everybody and everything is doing some or the other activity. Having said this, the construction industry is heavily dependent on the kind of heavy equipment being used on the site. The owner of a construction company invests good chunk of money in procuring heavy equipment and post buying takes immense care to ensure that the machines work fine. He spends good deal of money to keep them well maintained and so that it performs when it is needed the most. In a big project, you will see numerous heavy equipment. However, the most common types of machines that are seen on the sites will be discussed as follows.
Excavators are machines that are required to excavate earth using its boom or stick. It has the potential to dig deep inside the ground and extract the soil. It is one of the most common types of heavy equipment that can be seen in almost every construction site. This is because every construction site requires some amount of digging to be done and they can’t have a better choice than using an excavator. Some companies also make use of alternatives which are undoubtedly good options but may not be able to deliver the result that an excavator can do. It can also carry the soil and dump it on a dump truck. So there is no need of heavy equipment like wheel loader to do this work.
This is yet another common heavy equipment that can be seen in most of the construction sites. As the word goes bulldozers are used to demolish anything that comes on its way. Well, not literally anything but it is ideally used to break any existing structure and build something new in its place. Lot many construction companies depend on dozers during the initial phase of their project. Most of them prefer buying machines manufactured by Caterpillar and John Deere. However there are other players who have made their presence felt and are giving healthy competition to the pioneers thus giving rise to more innovative dozers.
Wheel Loaders are primarily used to ferry huge pile of soil from one point to another. It has huge space to dump the soil which is not available in any other form of heavy equipment. It can also cover a lot of distance in less time as compared to other construction machineries that are capable of carrying debris. Therefore, a wheel loader is often used in big construction projects where the chances of accumulation of dirt is more and which can be ferried easily to the dump truck.
Last but not the least; a dump truck is also widely seen equipment on a construction site. It is basically used to carry the dirt and debris from the jobsite to the dump yard. Almost every construction company need a dump truck to do away with the huge proportion of dirt it yields on a daily basis.
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Buying used construction equipment or a brand new one has been the topic of debate for years. Many experts feel that one should go for brand new equipment as they are installed with latest technology and one may find it far convenient to work on a new machine than a used one. However, others share a different opinion altogether. They feel that for new construction companies, it would be rather difficult to buy new machines as that can push them towards financial debts if they are unable to pay their monthly installments. Even if they manage to buy the machine outright, there are still high chances that they may drain away all their resources and end up borrowing to meet other business requirements.
It is difficult to judge what one should be doing as decisions should be taken based on the circumstances in which a person is. Let us assume that the construction business owner has surplus reserves and will have no problem if he pays the entire money in cash. Well, in this situation, he needs to analyze if he may need to pull out anything from the surplus to meet any of his business requirement for the next 9-12 months. In case if he feels that there may be a need for him to take some cash out and by investing the money in buying equipment can lead to financial difficulties later on, he should abort his plan to buy the equipment outright. But if he sees no encumbrances then he can make his way ahead to buy the machine.
Small construction companies should primarily focus on buying used equipment as that will not cost much to them. Used construction equipment can be bought at a reasonable price which they can easily afford. Nevertheless, the drawback a used construction equipment will have is that it will not have the advanced technologies installed in it that a brand new equipment will have. This will be a bit of pain to the operator and slightly more pain if he is accustomed with operating on new machines. He may not find it convenient to operate the machine like he used to with the newer ones. But if the operator can work on both old as well as new equipment, he will only need some days to get accustomed to the older version.
The other hurdle that a small construction company experiences quite often is with managing its finances. If they are not so financially stable, then it is never recommended for them to buy a new machine. That will only increase their business debts and it takes a long time to clear them all. They also have to do a bit of research work trying to know the lender who can offer them loan at the most affordable rate of interest. Now most of the small construction company does not have the time to do any of these research works. Therefore, it is prudent that they stick to the used machines and once they feel that they are getting financially stable that they should think of going for a new one.
If you have ever looked inside a construction site, you will come across various sorts of heavy equipment. Machines of all sizes and use are available and all seems to be brand new. Construction companies take immense care in maintaining their machines to keep them looking new. They also believe in investing their money in buying new equipment rather than buying it second hand. The new machine cost them thousands of dollars but it also ensures that the user gets all that he wants from the machine. Be it efficiency, accuracy, performance and low fuel consumption, they may get it all in that machine and therefore they often sell off the machine that gets old in the system. As far as the big construction houses are concerned, they can be better off with buying new equipment; however there are companies which struggle to keep their business running. They may not afford to buy new equipment whenever they desire to buy one.
For new businesses it is prudent to use used equipment rather than blocking their finances in buying new machines. Before they buy old equipment, they need to check if the machine is in proper order. Only when they are content with the quality of the machine and are sure that the equipment will deliver when it needs to they should go ahead with the deal.
It has been that many small construction companies who struggle with their businesses put away the idea of buying new machines and hunt for sellers wanting to sell their old equipments. The reason it is better to invest money for a new construction company in old machines rather than buying new ones is that they do not get marked down in the most important component of their business and that is taking care of their finances. Buying used machines helps them in saving a good chunk of money for future business requirements. Newbies experience lot of financial hardships in their initial phase and those who successfully make the right decision survive. It becomes extremely important for new businesses to understand their requirements and their limitations and do not get carried away by the likes of big construction houses.
Another challenge that often comes across new businesses is getting their loans sanctioned. They find it extremely difficult to get their loan approved by financial institutions especially when the loan amount is high. Therefore, if they decide to buy new equipment, getting the loan for it will be very difficult. However, buying used equipment will not become a huge debt on them and they may find institutions that will provide them with the loan amount.
It is not difficult to find sellers in the market. A buyer can make use of platforms like online sites that specifically deal in selling used heavy equipment. Buyers can check such sites and can expect to get a real good bargain there.