Why get a small business equipment lease?
BusinessWhether you are a new business owner or an established company, you may be faced with the challenge of equipment financing. Should you buy new equipment or get a business bank loan? Better yet, should you apply for equipment lease financing?
What advantages can equipment leasing bring to a small business? In this article, let’s talk about the top reasons why you should consider commercial equipment leasing.
Save your business budget.
Having a steady cash flow is important for any business. When you lease equipment, you can use your available cash for other expenses and save the rest for emergencies.
100% Financing.
Yes, there is no down payment required to lease equipment. Unlike bank equipment loans where you have to pay the cost of taxes, shipping and installation separately, leasing is 100% financing, which means everything else is included in your payment.
Get access to the latest equipment.
As technology continues to advance, new and better models of equipment are constantly being introduced to the market. Obviously, the latest models would cost more than the older ones. The price of the equipment may not give you the option of buying state-of-the-art equipment. On the contrary, when leasing, you can choose any type of equipment you want without worrying about the high price.
No to Obsolescence.
As a result, the equipment you buy this year could be outdated in years to come. Purchasing limits your options since you have invested your money in the equipment you purchased. When leasing commercial equipment, you can always have the option of keeping or replacing the equipment with better ones.
Release your company’s line of credit.
If you’re going to get a bank loan and use the money to buy equipment, the high price of the equipment can eat into your business line of credit. When you lease equipment, there’s no need to deplete your business line of credit. If necessary, you can still apply for a loan and use the money to buy more supplies, for marketing purposes, or to hire more workers.
Pay In Facilities.
Only equipment lease financing allows you to pay for equipment as you use it. There is no need to shell out a large amount of cash right away. You can even choose an installment plan (monthly, quarterly, yearly, etc.) that works best for your financial capacity, since most leasing companies offer flexible payment terms.
Enjoy Tax Benefits.
Unlike purchased equipment, leased equipment is 100% tax deductible. Imagine how much money you can save with tax benefits alone. Every penny you can save counts, especially if you’re just starting your business.
Never Complicated.
The process of applying for a commercial equipment lease is much simpler than applying for a bank loan or an equipment loan. You can shop around and compare internet leasing companies and submit your application online as well. Most leasing companies give approval in 24-48 hours. As soon as you are approved, you can expect to receive the equipment you ordered within the next 3-4 weeks.