Top 10 Reasons to Lease Equipment
Most leases can be structured with zero or as little as one payment paid in advance and a small documentation fee.
Unlike dealing with bank loans and other alternative types of financing, leasing is a simple and convenient process. Credit in most cases can be pre-approved up to $200k on a one page credit application avoiding the task of providing both business and personal tax returns.
NO PAYMENTS FOR UP TO 6 MONTHS
Leases can be structured in a variety of ways to meet the individual needs of the lessee. Examples of this would be no payments for up to 6 months and terms ranging from 12 to 72 months. This type of flexibility is perfect for a new business as well as ones looking to expand.
PRESERVE CREDIT LINES
Credit lines with banks and other depository institutions are precious and hard to establish. Conserve those limited lines for operations and emergencies.
INCREASED PURCHASING POWER
Your needs may be for a $70,000 machine but your available cash/credit only allows for $35,000, hence you settle for a smaller piece of equipment that only meets your needs half-way. Leasing can increase your purchasing power by allowing you to finance the needed equipment for the business, that way you get the equipment you need to meet demand and promote growth.
Leasing is available to new businesses. The financing approved is based on a professional license as opposed to more
traditional credit methods, enabling new professionals to obtain financing.
RETURN ON INVESTMENT
Leasing makes sense when the equipment you use creates a return that exceeds its cost. In other words, leasing allows you to set a fixed monthly payment for the use of the equipment that creates an anticipated return exceeding that payment. That way you are certain that your operation is profitable and the equipment serves its purpose.
FIXED RATE FINANCING
Leasing is not subject to market fluctuations and interest rate increases. You can negotiate the monthly payments up front and secure a fixed rate for the life of the lease. This makes it much easier to project cash flow and budgets for planning purposes.
When structured properly, a lease agreement may allow you to receive tax benefits. These benefits and their availability are subject to an array of factors. Please call us today to discuss the details.
CONSERVE WORKING CAPITAL
Keep your hard-earned cash on hand or invested. Partially pay for an asset as it is used. Use working capital where it is required for growth. This ability to grow and keep your cash ultimately puts you ahead of your competition and ensures long-term profitability.