Building Blocks Leasing may be the solution to grow your business quickly.
By Rosalind Resnick •
Opinions expressed by Entrepreneur contributors are their own.
Question: My partners and I started a construction company five years ago, and it's really starting to take off. How can we buy the trucks, backhoes and other equipment we need without tying up all our working capital?
Answer: For capital-intensive businesses that need to expand rapidly while conserving cash, equipment leasing can be a great way to go. In a typical operating lease, the bank or leasing company owns the equipment, and the company that leases the equipment makes payments over a period of time--no different from the lease you probably have on your company car. But if you're looking to lease multiple pieces of equipment, you may want to ask your bank about a special type of credit line that lets you finance, say, $500,000 to $1 million worth of equipment. While each piece of leased equipment will need to be approved separately, having a credit line like this in place can streamline the process of obtaining lease approvals and get your trucks on the road that much faster.
