A significant increment in your sales, scope and the services you offer to customers can be achieved when you have the right equipment. The kind of equipment you employ in rendering your services projects the image of your organization. It also reflects the level of professionalism and quality to be expected by your customers. Using good quality equipment can attract more customers to seek your services. Equipment leasing is more sustainable than outright equipment purchase. This is because asides the fact that purchasing and maintaining equipment is costly, your investment could be considerably devalued over just a few years by the ever evolving technology.
The terms associated with Equipment Leasing is quite flexible, mostly running between 24 to 60 months. There are also buy out options and at any point in time, more equipment can be added to your lease. All it takes is a simple addition to the monthly payment, with no need for readjustment of the lease terms.
Compared to average business loans, equipment leasing offers benefits which include:
- No need for down payment, and the equipment can be purchased at the expiration of the lease.
- It offers competitive pricing and terms to suit your needs and your business cycle.
- Customized loans and leases ranging from $10,000-$2 million.
- Top notch customer services.
How Equipment Leasing Works
Leasing can be compared to a rental agreement. It essentially involves the renting of an asset for a particular time period. Payment is made to the owner of the equipment based on the agreed period, while you get to use the equipment as though it is owned by you. Equipment leasing is similar to apartment and car leasing, which are the more popular types of lease. In this case however, it involves leasing pieces of equipment for various businesses, instead of apartments or cars.
Equipment lease involves monthly payments, and there is provision to either terminate or renew the lease at the end of the lease period or initial agreement. There are also cases where you will have the option of purchasing the equipment for its market value.
Equipment leasing is a very valuable tool for obtaining the necessary equipment to help you maintain a functioning and successful business. It is cost-effective and is very ideal for businesses that deal with rapidly evolving technology. Equipment leasing is a flexible and accessible financing option that comes with a variety of benefits.
Benefits of Equipment Leasing
Low Monthly Costs
Most times, equipment leasing does not require upfront payments and the monthly rates are usually lower when compared to most loan or credit facilities. With equipment lease, you can rent pieces of equipment that you normally cannot afford to buy.
Almost Anything Can Be Leased
There is a sheer variety of equipment that can be obtained on a lease. This ranges from office furniture and fixtures to catering equipment, printing equipment, commercial vehicles, large coffee machines, and so on. Asides been a good means of assessing expensive equipment, it is also useful for subcontractors who need to rent different pieces of equipment for short-term projects.
Equipment leasing is a good option for those in fields where the equipment employed rapidly evolve or have a short lifespan. This would help save money spent on such equipment in the long run.
Cash Flow Management
Equipment leasing helps in future budgeting. It makes it possible to pay flat rates and in some cases, negotiate repayments based on your income. It also increases your accessible working capital compared to when you need to purchase your equipment. This makes it possible for business owners to conveniently save and allocate their capital to other expenditures.