Big Sky Land Management Shares Tips for Rent-to-Own Programs

Purchasing construction equipment can be a financial challenge for business owners. However, rent-to-own programs can prove to be a useful strategy for starting and/or growing your business. I sat down with Cat^® Ambassadors Justin and Danielle Miller of Big Sky Land Management to hear their insights about the pros and cons of rent-to-own programs and how other companies might start their own.

Justin and Danielle have been in business since 2005 and, in that time, have weathered both a recession and pandemic. They’re smart about their cashflow and found that a rent-to-own program for their construction equipment has helped them get the machines they need while managing their money wisely. They’ve also experienced some other benefits:

• Don’t need to have as much cash on-hand to rent
• Can create equity in their rental machines
• Can try out a machine before purchasing to see if they want to commit
• Lets them test new technologies they might not otherwise get to use
• Still have warranties on rental equipment, so if things break down, they're covered

“If you’re buying a machine outright and getting a loan, you must make sure your revenue supports a loan,” say Justin and Danielle. “A lot of young contractors get ahead of themselves.”

While construction rental programs have plenty of benefits, they also come with some drawbacks:

• Renting can cost a bit more in the long run
• Purchasing equipment with cash provides better incentives than renting or leasing, and still allows you to get a loan on your purchase through a third-party vendor or Cat Financial.