Every small business needs upgraded equipment’s to function effectively. From small offices with workstation; restaurant businesses with commercial ovens, cooking equipment’s and commercial sinks; medical franchises with Lift chairs, MRI Scanners, and X-ray machines; all the way to the large manufacturing processes – every small business have need for equipment’s to operate efficiently.
Earlier, many business owners buy equipment’s of their own as they are reluctant to pay monthly leasing fees for equipment’s. Recently, there has been a shift towards equipment leasing over own purchases. Leasing business equipment offers many benefits to businesses over purchasing.
Stay Current with Latest Technology
Leasing business equipment not only saves you time and money when it comes to up-gradation but also allow you to spend more money on the ongoing operations. Many terms for upgrading and replacing equipments are usually written in the leasing agreement, so your business will always stay current with the latest technology and never caught behind.
Full Financing without Any Down-Payment
Most traditional lenders require collateral or personal guarantee so as to get a percentage of the equipment funding. But with equipment leasing, your business is able to get 100% of the financing and without any down payment. The same is very handy if you are concerned about your business cash flow.
Make Your Business Cycle Flexible
Flexibility is the key feature of equipment lease financing. You will find many lease types that allow for seasonal business variations, which lesser the monthly payments while you build a project and not generating revenue from the equipment. In a nutshell, equipment lease financing make your business cycle the flexibility it needs to work efficiently in the initial stages of the revenue generation.
Service Are At Leasing Company
When you purchase equipments for your business, you have the burden of equipment storage, maintenance, and disposal. It will cost your business time and money. The best is to focus on your regular business operations and let the leasing company works for you. In an equipment lease financing, you can package installation and maintenance in the leasing agreement, along the removal of any outdated equipment you may have (through the lessor) while upgrading.
Get You Taxes More Deductions
One of the main benefits of leasing business equipment is the tax relief. Equipment leasing agreements offer lesser leasing rates through tax-oriented agreements, since the leasing company holds the ownership and depreciation charge. On the contrary, a conditional sale agreement actually increases tax benefits for higher deductions for your small business.
Let You Planned Cash Flow Better
Maintaining business cash flow and steady budgeting are also major benefits of equipment leasing. It allows you to plan your leasing expenses and incorporate them into your business plans. Under a equipment leasing agreement, a business can also negotiate personalized leasing payments that match variations in the business cycle. Instead of outright purchase resulting in budget fluctuations, leasing allows smooth cost planning.
Reduced Risk To Business
Purchasing equipments add risks to the owner from equipment know-how to capital expend, from asset management to obsolescence. On the other side of the coin, equipment lease financing lowers the risk and allow you to focus on your business. With equipment leasing, you will use equipment when you need it, and it saves you time, costs, and get rid of the equipment money pits.
Consult with A Leasing Expert
To maintain your cash flow and to avail the best opportunity, always consult an equipment leasing expert before going for equipment financing. Look for flexible terms and rates, and compare them with what you would be paying for your purchase. Consider the pros and cons and evaluate whether equipment lease financing is right for your business or not.