Heavy equipment can increase capacity and reduce reliance on external hire. Its financial value depends on how regularly it can be used on productive work.

Include maintenance, transport, storage, insurance and operator costs in the budget. Downtime and seasonal demand can affect the income available for repayment.

Compare the financing term with the asset's expected useful life. A project finishing early does not automatically end the equipment loan.

Key takeaways

  • Heavy equipment can increase capacity and reduce reliance on external hire.
  • Include maintenance, transport, storage, insurance and operator costs in the budget.
  • Compare the financing term with the asset's expected useful life.