Whether you have a new or established business, it can be challenging to find the money to purchase new equipment. Have you ever considered equipment leasing? There are several leasing benefits you should be aware of.
The most attractive benefit of leasing your equipment is probably lower cost. You typically don’t have to pay the full purchase price upfront, and you don’t have to come up with a down payment on a loan. In addition, your monthly payments should be lower than a loan payment. You also won’t pay interest like you would on a business line of credit or loan.
Allows Payment Flexibility
Unlike a loan, whose payment is due every month, your lease payments can be adjusted to meet your needs. This is especially beneficial for seasonal businesses or those that experience volatility in their revenues from month to month. You can negotiate when you make your payments, from weekly, biweekly and monthly to quarterly and yearly.
Provides Updated Technology
When you lease your equipment, you have access to the latest technology. In addition, when your lease is over, you can upgrade your equipment to next-generation technology. You can use the best, most efficient and technologically advanced equipment on a consistent basis without purchasing new equipment every few years.
Frees Up Working Capital
Unless you are flush with cash, which should really be reinvested and making more money, you probably don’t want to use your working capital to purchase machinery. Leasing your equipment allows you to focus your company’s available cash flow on paying your monthly bills and reinvesting in your business.
Is Available for Most Businesses
Small or new businesses often have difficulty gaining financing for large purchases. These companies may not have built their business credit, may have poor credit or may not have the cash flows necessary to secure a loan. However, most businesses can find leasing companies that have the equipment they need and will work with others in their situations. Some lessors even work with organizations with poor credit or those that have gone through bankruptcies. It may take a little work, but you should be able to find an equipment leasing company that will work with you.
Provides Near Immediate Access
The business loan process can be lengthy, but your lease can be approved within a few days or a week. This gives you almost immediate access to the equipment you need. In addition, these organizations typically ship and set up your equipment quickly.
Equipment leasing has many benefits. Find out more about these and other benefits as you research the new machinery you need.