Leasing Logging Equipment: Wood Chippers, Log Splitters, Etc.

In order to keep a logging business financially on track, an owner must keep enough working capital in hand to cover unforeseen hardships and expenses. Leasing logging equipment can help maintain working capital.

The forest product industry is a multi-billion dollar industry, and there are a wide range of opportunities for entrepreneurs who are willing to enter it. However, it requires substantial investment to break into the logging industry. Startups require multiple pieces of large equipment, and more equipment produces greater profits. For example, if a company is able to perform whole-tree processing, it is able to earn greater profits through the sale of wood chips rather than only the delimbed logs. This requires more equipment.

Purchasing new skidders, track hoes, and log loaders is rarely a wise decision for a start-up or established company. The capital required does not pencil out to an increase in profits because equipment must still be maintained, and an old logger works as well as a new. Used logging equipment is less of a financial burden, but it still costs a significant amount of money which may require bank loans. None of this is necessary with leased equipment.

Advantages of leasing

Lessees of logging equipment don’t need to be saddled with loans, and they can rely on consistent business expenses in the form of a lease payment. Furthermore, there is often the option to lease to own the equipment, so payments are not without long-term gain. One of the biggest advantages is maintenance, which is included in lease agreements. The only worry about equipment breakdown becomes the time lost in getting a replacement, but there’s more working capital to cover that loss.

For startups, a huge advantage to leasing equipment is financial statement appearance, which does not have a huge loan attached to it. If a startup eventually needs a loan, they will appear more stable with the extra working capital. It is a financially smart decision, and banks respond fondly to working capital that reduces their risk in a loan.

Equipment to consider leasing

  • Feller buncher
  • Processor
  • Stroke delimber
  • Shovel logger
  • Harvester
  • Forwarder
  • Log loader
  • Skidder
  • Track hoe
  • Log splitters
  • Wood chippers

Leasing equipment offers opportunities for large and small logging companies, from industrial logging to firewood chopping. It allows companies to have quality log splitters and technologically advanced wood chippers. Leasing ultimately gives logging companies new and old the chance to run their business with less risk and more profit.

 

 

 

 

 

 

How would you like to have a new compressor every three years instead of searching for compressors for sale?

Well, that’s what happens when you lease a quality air compressor. Every time your lease is renewed, the air compressor is replaced with a new model! All while you continue making a minimal monthly payment per your lease agreement.

That’s not the only reason to lease an air compressor. The greatest benefit of leasing is that it does not require a complicated lending process, and there is no down payment requirement. That means you can start using your air compressor and making money with it prior to ever making a payment. It also takes the stress of depreciation and maintenance away.

Why no maintenance?

Firstly, there’s no maintenance required by you during the first three years of leasing. The lessor will do annual checks along with any further repairs or maintenance requirements in the interim. Following your three year lease, you can opt to purchase the product with a limited warranty and maintenance agreement. You may also opt for renewal with a new machine under the same stipulations, or you may walk away with no further business obligations. The choice is yours! (Note: Every lease agreement differs to some degree.)

What type of air compressor is right for my company?

When considering leasing an air compressor, it is important to examine what type would be best for your professional application. Stationary and portable air compressors are available, so it is important to consider what type of tools you will need to attach to the compressor and where they will be needed.

Types of air compressors available:

  • electric
  • gas-powered
  • oil-free
  • pancake
  • single-stage
  • single-tank
  • stationary
  • two-stage
  • dual-tank/ twin tank
  • wheelbarrow

The decision to purchase one compressor may not be an option. There may be more than one type of compressor suitable for your professional needs. In some cases, a company may want to consider a combination of air compressors for sale and air compressors for lease. Many leasing companies will sell their air compressors that have expired their three-year contract at a highly reduce rate with a maintenance agreement. It is worth considering.

No matter what the application is or where the work needs to be performed, there is an air compressor that will fill the need. Smaller, personal air compressors may not be available for lease, but they can be purchased at a reasonable initial rate with warranties. For professional applications, it is a huge advantage to lease this piece of equipment because it can be upgraded, and there is very little initial investment.

 

 

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