Surveying equipment finance provides financial solutions to businesses and professionals in the surveying industry to acquire the necessary tools and technology. Surveying equipment includes items such as total stations, GPS systems, GNSS systems, field controllers, drones, laser scanners, 3d Scanning, laser levels, and other precision instruments used for land measurement, construction planning, and mapping.
Common Financing Options for Surveying Equipment
Equipment Leasing
Operating Lease: A flexible facility suited to most business needs ensuring they have the right equipment for their day to day operations. The business rents the equipment for a specific period of generally 12 – 60 months and then has the option to purchase the equipment, continue to rent at a reduced amount, return or upgrade.
Finance Lease: The business makes payments over a period of 24 – 60 months, with an option to purchase the equipment at the end of the lease. This lease often provides ownership and generally the equipment is on the balance sheet.
Chattel Mortgage / Equipment Loans: A lump sum loan is provided for purchasing the equipment outright. The loan is repaid over time with interest, and the business owns the equipment immediately. This option allows for full control and ownership from the start.
Vendor Financing: Some equipment manufacturers or suppliers offer financing directly to buyers through companies like Finance@work. This can simplify the purchasing process and might include benefits like extended warranties or bundled services.
Line of Credit: A revolving line of credit specifically for equipment purchases. Businesses can draw on this credit as needed, providing flexibility and interest only on the borrowed amount.
Benefits of Surveying Equipment Finance
Preservation of Capital: Financing allows businesses to acquire high-cost equipment without significant upfront investments, preserving cash flow for other business operations.
Tax Benefits: Depending on the financing structure, payments may be tax-deductible, and some equipment may qualify for accelerated depreciation.
Access to Latest Technology: Surveying equipment often requires the latest technology for accuracy and efficiency. Leasing options allow businesses to upgrade regularly without large capital outlays.
Cash Flow Management: Spreading the cost of equipment over time with predictable payments helps manage cash flow more effectively.
Considerations
Interest Rates and Fees: It’s important to evaluate the total cost of financing, including interest rates, fees, and any other associated costs.
Term Length: The financing term should match the expected useful life of the equipment and the business’s cash flow cycle.
Maintenance and Calibration: Surveying equipment often requires regular maintenance and calibration. Some financing agreements may include these services, which can be a valuable addition.
Residual Value: If considering a lease, understand the residual value of the equipment at the end of the term and any purchase options.
Specialised Financing
New vs. Used Equipment: Both new and used surveying equipment can be financed. Used equipment might be more affordable, but the terms may differ.
Technology Upgrades: Some financing options, particularly leases, may include provisions for technology upgrades, allowing businesses to stay current with the latest advancements.
Seasonal Payment Plans: For businesses with seasonal income variations, some lenders offer payment plans that align with cash flow patterns, reducing financial strain during slower periods.
Surveying professionals and businesses should carefully evaluate their equipment needs, the expected lifespan of the technology, and their financial situation when choosing the best financing option. The right financing solution can enable access to the essential tools needed for precise and efficient surveying while managing cash flow and preserving capital for other investments.