Financing Options for your Modular Building Needs – Making the Smart Decision
Build up your Goals, not your Balance Sheet
It probably goes without saying that planning for, managing and completing a construction project is a monumental task. But ensuring a successful project while simultaneously managing day-to-day operations and the cash flow crunch that inevitably ensues can often be overwhelming. In the end, the enduring health of your balance sheet will dictate the scope, effectiveness and overall success of the project.
On top of financing the renovation or building of new construction, temporary structures and accommodations are typically needed to keep operations up and running. Modular buildings used during the construction phase can cost as much or more than the permanent building being developed. And in many cases, multiple job site trailers are necessary.
In some cases, organizations want to own the modular building so a capital lease is the best solution. However, often times the need for temporary structures leaves project managers between a rock and a hard place. They don’t need the structures once the project is complete, so the investment of ownership isn’t justified, and the cash flow crunch associated with a major development project leaves little in the way of budget for expenses that won’t directly contribute to the project’s success.
Enter operating lease/rental structures that enable operations to continue without missing a beat, save money in the long run, and don’t impact the balance sheet.
By partnering with an organization like IFS that offers not only capital leases, but operating leases/rentals, project managers can finance modular structures from end-to-end, including all associated soft costs. The right modular building financing partner will package all elements of the modular structure, including delivery, installation, on-site work, plumbing, maintenance and removal for a turnkey solution.
This approach preserves capital necessary for the project itself, cuts expenses substantially vs. purchasing the structures, and provides flexibility in the form of a month-to-month agreement that lasts only as long as the construction project.
If modular building financing might be in your future, here are a few words of wisdom.
- Partner with a firm that understands your needs and can support you through the entire process, start to finish.
- Seek out professionals with experience in modular building projects and who can offer consultation and guidance regarding your options to come up with the optimal solution.
- Do the math. When deciding if financing programs could help your project, consider soft costs, interest rates, and total cost of ownership for the modular structure.
- Keep the big picture in mind and consider the additional room in the capital budget that might be created via leasing. Could those funds be applied to the project itself, or possibly address other needs within the organization? For example, schools might purchase additional laptops for students and staff, or hospitals could acquire new equipment.
At IFS, we cover all these bases. Here’s what one customer had to say recently about working with us:
“Our school district was in dire need of 12 new classrooms, however we only had enough budgeted for 6 classrooms as the site work was going to very costly. At the initial meeting with the dealer, we were told that the site work could not be financed and that all of these costs were due upfront. A couple of weeks later we were introduced to IFS, they were able to include all costs in the lease allowing us to install the 12 classrooms immediately. Our school and students couldn’t be happier, and we could not have achieved this without the help of IFS.”
The bottom line is that project managers who engage the right modular building financing partner benefit from a 1+1=3 effect. With access to modular structures and no impact on the capital budget, operations don’t miss a beat, project budgets remain intact, and options for additional expansion and acquisition are made available in ways they otherwise wouldn’t be.
Contact us today to learn more about IFS’ financing solutions for modular buildings. Contact firstname.lastname@example.org.