The three most popular forms of paying for a modular building are a standard operating lease, lease purchase, or outright purchase.
Let’s assume that you know you need additional space for your organization and you don’t have the time for a conventional construction project. You’ve decided that a modular building will be the fastest method of solving your facility need but you haven’t decided how to finance the project. This is where the modular building industry makes things easy and budget friendly.
Here are the most common forms of transactions in the modular building industry:
- Lease-to-Own: This option allows you to lease the modular building for a set period of time and then purchase it at the end of the lease term. This can be a good option if you are unsure about your long-term needs or want to spread out the cost of ownership over time. Most suppliers offer this option and are usually willing to negotiate the terms and conditions to meet your specific needs. You may also be able to amortize the one-time charges like delivery and installation into the monthly lease rate.
- Traditional Financing: This involves obtaining a loan from a bank or modular building finance company to purchase the modular building outright. You will typically need to provide proof of creditworthiness, a down payment, and pay interest on the loan. One-time charges can also be amortized into the loan to keep your out-of-pocket expenses low.
- Equipment Leasing: This involves leasing the modular building as a piece of equipment, similar to leasing a car or other machinery. This can be a good option if you need the building for a shorter period of time or want more flexibility in your financing options.
When considering financing options for a modular building, it is important to carefully review the terms and conditions of each option and determine which one best meets your needs and budget.