The Purchasing & Financing Process

Acquiring a pre-engineered steel structure—whether a single-car garage or a massive commercial warehouse—involves a very specific buying and permitting cycle that differs from purchasing a traditional consumer good. Because these structures are custom-fabricated to your exact specifications, and because they frequently require municipal approval, understanding the financial and chronological steps is critical to a smooth project.

This comprehensive guide breaks down the typical timeline from placing an initial deposit to making your final payment upon successful installation, while comparing the various financial avenues available to secure your building.

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1. The Buying and Permitting Cycle

Purchasing a metal building is a multi-step process. Unless you are installing a small carport on an agricultural lot with no zoning laws, you should expect to navigate the following standard timeline:

1. Order Entry: Once your order and initial down payment are submitted, your contract enters the manufacturer’s system. This initial processing takes 1-2 business days.
2. Site-Specific Engineering (If Required): If your local municipality requires a building permit (which is highly likely in high-density or high-wind zones), the dealer will request specific engineered plans. These wet-stamped plans prove to the city that the structure meets local snow load and wind speed requirements. These take 3 to 14 business days to be processed by the engineering department.
3. The Permitting Phase: You (the customer) take these engineered plans to your local building department to apply for your permit. This phase is entirely dependent on your local government’s backlog and can take anywhere from a few days to several months.
4. Site Preparation: While waiting for the permit, you must prepare the site. This involves grading the land (see our Ground Leveling guide) and pouring the concrete foundation.
5. Confirmation & Scheduling: Only once you have the permit in hand and your concrete pad is fully cured (which takes up to 28 days) do you notify your representative. Your unit is then moved to the fabrication queue and placed on the delivery and installation schedule. Note: Quoted lead times only begin at this stage.

[!WARNING] Do not skip the permitting phase. Erecting a steel building without required permits can result in massive fines, forced tear-downs, and an inability to legally sell your property in the future.

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2. Deposits, Plan Fees, and Final Payments

Understanding how and when money changes hands will prevent unexpected surprises during the build cycle.

The Down Payment

A down payment is collected by your dealer upfront to initiate the order. This secures your pricing and places your order into the system. It is important to note that the down payment is generally collected before state sales tax is applied.

Engineering Plan Fees

Fees for custom drawings, specific engineering plans, and structural calculations are non-taxable and are paid directly to the manufacturer.

[!CAUTION] Plan fees are completely non-refundable once the engineering department begins drafting the plans. If your permit is denied by the city for zoning reasons, you cannot recoup the engineering fees. Always verify basic zoning laws (like setback rules and lot coverage limits) before paying for engineered plans.

The Final Balance (C.O.D.)

The remaining balance for the structure (the total cost minus the down payment) is typically collected via C.O.D. (Cash on Delivery). This payment is made directly to the installation crew upon successful assembly and your final inspection of the building. Most crews accept cashier’s checks, money orders, or credit cards (though credit cards may incur a 3% processing fee).

Typical Project Cost Breakdown

When budgeting for your entire project, remember that the building kit is only one part of the total cost. Here is a general breakdown of where your money will go on a turn-key project:

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3. Comparing Financing vs. Rent-to-Own (RTO)

If you prefer not to pay the entire balance out-of-pocket, the metal building industry offers two primary financial avenues: Traditional Financing and Rent-to-Own (RTO) programs. Choosing the right path depends heavily on your credit profile, your long-term plans for the building, and how quickly you need the structure installed.

Option A: Traditional Financing

Traditional financing is offered through specialized lender networks partnered with the manufacturer.

• How it works: You apply for a loan just as you would for a vehicle.
• Credit Requirements: This requires a standard hard credit check. Minimum credit scores generally hover around 600, though better rates are reserved for higher scores.
• Ownership: Upon installation, the loan is funded and you take immediate ownership of the building. The lender places a lien on the structure (not the land) until the loan is paid off.
• Best For: Buyers with good credit who want to own the building outright, desire lower monthly payments spread over a longer term (up to 72 months), and want the freedom to heavily customize the interior immediately.

Option B: Rent-to-Own (RTO) Programs

Rent-to-Own is an excellent alternative for buyers who may not qualify for traditional financing, or who only need temporary storage and prefer a shorter-term commitment.

• How it works: You rent the building on a month-to-month basis. A portion of each monthly rental payment goes toward the principal cost of the building.
• Credit Requirements: No credit checks are required. RTO programs are approved based on proof of income and the initial down payment, making them highly accessible.
• Ownership: You do not own the building until the contract is fully satisfied. If you complete the contract terms (usually 36, 48, or 60 months), you gain full ownership.
• Best For: Buyers with poor credit, those needing a temporary structure (you can return the building with no penalty if you no longer need it), or those who want a fast, hassle-free approval process.

Financial Options Comparison Table

Feature	Traditional Financing	Rent-to-Own (RTO)	Cash Purchase
Credit Check Required?	Yes (Hard Pull)	No	No
Immediate Ownership?	Yes	No (Rented until payoff)	Yes
Typical Term Length	24 to 72 months	36 to 60 months	N/A
Early Payoff Penalty?	Usually None	None (often a discount is applied)	N/A
Total Cost of Ownership	Moderate (Principal + Interest)	Highest (Principal + Rental Fees)	Lowest (Principal Only)
Risk of Repossession	Yes, if payments cease	Yes, but no hit to credit score	None

[!NOTE] A Note on RTO Total Costs: Be aware that the total cost of ownership under an RTO program will be significantly higher than a cash purchase due to the rental/leasing fees built into the monthly payments. Always ask to see the amortization schedule before signing an RTO contract.

By understanding the timelines, the non-refundable nature of engineering fees, and the distinct differences between traditional financing and RTO, you can approach the purchase of your steel building with confidence and clarity.