Why Asset Financing is So Necessary With a New Construction

A large construction project is a risky and complicated endeavor. Worse yet, a new building construction is something that requires a long-term focus, were profit margins are not expected to be even surface for a few years. So to make a successful business construction project work, there needs to be a strategy outlined with all components and areas of its development. So what is the first major obstacle anyone will face in the construction of the new facility for the purposes of business? It may be the business plan and the outlining. But as far as the construction goes, it is the physical components of the property. It is the scaffolding, fixings, cradles, and towers that create the physical building.

The Economic Slump

There is no getting around it. These costs must be managed and sustained to even see the project come to fruition. There are countless cases across America, especially between 2007 to 2010, or projects were left half-finished due to budgeting issues. Sometimes, these of the unavoidable ramifications of doing a large-scale business. Yet other times, they are problems that could’ve been avoided.



There are a handful of entities that asset finance construction projects, such as Portman Asset Finance. Their focus is to supply the physical goods that allow that project to be made. This will include a number of cool features. Firstly, the financiers may not require a deposit to move forward with the project. The financing can be as low as €10,000 if it is a small project or one that is partly funded already, or upwards of €500,000 on something that is massive. Another great feature of financing for construction projects are the low rates. Many sources start at 2% or 3% in a typical finance lease, and usually do not exceed 5%.

A Need for Asset Financing

In the country, it is possible to write off every expense that goes into the creation of the business. This means that the entire project is 100% tax-deductible, which is a cost savings that will be incredibly important for that first year or potentially two years of business. This is a time for tax write offs become immediately important, and long-term sustainability is the top priority.

Working on these long-term projects to generate cash flow is a great journey. But that obstacle with scaffolding equipment financing and getting it done really stalls a lot of creative people in their place. Research the proper financing and work with the source that is competitive and fair.