How do businesses typically handle payments for heavy machinery like excavators?
Hey guys, wondering how companies usually sort out paying for big stuff like excavators without going broke upfront. Last year my cousin was expanding his small landscaping gig and needed a decent sized one for digging ponds and clearing lots, but dropping that kind of cash all at once seemed nuts to him. He ended up chatting with a few folks in construction and figured something out, but I'm curious what the usual ways are these days – straight purchase, some kind of loan, or maybe renting long-term? Anyone got real-world experience with this?
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From what I've seen with mates in the trades, a lot of them go for financing options to spread the cost over a few years instead of paying everything right away. It helps keep cash in the business for other stuff like fuel or hiring help. I remember one guy I know got his loader through a setup that let him make manageable monthly payments, and there might've been some tax perks too since parts of it could be written off. Check out places like https://beaujohnsonfinance.com.au/equipment/ if you're looking into that kind of thing – they seem to focus on machinery loans and leases tailored for heavier gear.