Equipment Leasing – Five Leasing Methods That Improves Cash Flow

Posted on | April 12, 2012 | No Comments

Many entrepreneurs have to juggle with cash shortages while setting up and growing a business. However, you can spend less by leasing equipment instead of buying. Business owners all over the world operate in an aggressive and highly competitive environment. Conserving working capital can give you an edge over competitors. It is not wise to buy expensive equipment which will be obsolete within a short time. This is true for businesses operating in the high-tech sector where technological advances happen at a breakneck speed. The average time for a lease will run for about 2 to 5 years after which you can update to better equipment. The following are some of the ways you can improve business cash flow by leasing.

Conserving Working Capital

According to statistics from the Small Business Administration (SBA), 80 percent of small businesses and startups fail within the first three years. There are several factors which can lead to such a situation. Chief among them is insufficient capital, unexpected growth, and poor credit arrangements. If you decide to take the leasing option, the facilitation is easier than applying for equipment loans.

Tax Advantage

Leasing is generally reflected as a business operating cost that is deductible from taxable profits. It is advisable to consult your accountant to ensure that the equipment lease being considered is eligible for tax deductions. Read more

Why You Should Consider Equipment Leasing and Financing

Posted on | March 12, 2012 | No Comments

Running a business is a capital-intensive process, and figuring out how to maximize profit is important. In most businesses, you need some kind of equipment in order to get started. If you do not feel like investing thousands of dollars in buying equipment, another option to consider is equipment leasing. This strategy can provide you with a number of benefits compared to buying equipment outright.

How it Works

The basic idea behind equipment financing and leasing is simple. You pay monthly for the use of your business equipment. The equipment leasing company still technically owns the equipment and you are just renting it from them. You keep the equipment for a specific amount of time and then turn it back over to the leasing company at the end of the lease. [Related Article: Equipment Leasing – A Practical Method of Business Financing]

Improving Cash Flow

One of the biggest advantages of using a financial lease arrangement with your business equipment is that it allows you to improve your cash flow. If you were to buy the equipment outright, you may have to come up with many thousands of dollars all at once to make a purchase.   Read more

Practical Tips for Businesses Leasing for the First Time

Posted on | January 9, 2012 | No Comments

Leasing can be a great option for a business that needs to acquire equipment but have a limited budget.  Ready to use leasing to help finance your business? If yes, consider the following tips to make your leasing experience a success and hassle-free:

1. Check your business credit.  Some leasing companies only accept customers with solid business credit history.  Some businesses that have been in operations for quite a few years do not have credit history and have yet to start building credit. 

Thus, whether you are an established business or a start-up business, it’s a good idea to check the prospective lessor’s requirements.

An impressive business credit rating will work to your advantage.  Many leasing companies will be willing to work with you and offer you their best deals.  On the other hand, if you have no credit or bad credit, you should look for leasing companies that offer special lease programs and thus, avoid rejection.

2. Do your own research.  The rates, fees and terms will vary from one lease provider to the next.  You should spend some time exploring the market to make sure that you choose the best business equipment leasing partner.   Read more

How A Startup Business Can Obtain Financing Using Equipment Leasing

Posted on | January 2, 2012 | No Comments

The biggest challenge about starting a business is financing.  Many businesses have to work with a very small budget and if your business needs to have equipment, purchasing costs can be a major challenge.

Leasing business equipment is a great source of funds for many businesses. Both new business and established business can benefit from utilizing equipment leasing.

Leasing requires a very minimal investment since most leasing companies only require one month or two months down payment. Through leasing, a business can preserve available credit lines for working capital or for emergencies.

Indeed, many successful businesses today have started from scratch and were able to grow their companies through the help of their equipment lease partners.  If you own a start-up business, what are the things you should know about this financing option?  Below are some facts about business equipment leasing.

Can you acquire a lease if you don’t have credit history?  The answer is yes. Of course, some leasing companies only accept established businesses but you can also find lessors who are willing to work with new and start-up businesses.  Yes, there are leasing firms that offer special lease programs – even for businesses with no credit history. Read more

Should You Lease Business Equipment in 2012?

Posted on | December 29, 2011 | 1 Comment

Another year is about to end and as the year 2012 comes in, many business owners will need to make important decisions for their companies.  If you own a business, one question that you might need to consider is, “Should I lease business equipment?”

Leasing equipment presents many benefits but you should also be aware of some drawbacks.  Listed below are some of the most important advantages leasing business equipment.  Take a closer look at each and see how it applies to your own business.

Equipment Leasing Benefits

Get access to the latest equipment.  Having a small budget may limit your options if you’re going to purchase equipment.  State-of-the-art or the newest models of equipment will obviously cost more than older versions. When you lease, you only need to make small monthly payments and you will have access to the latest and the best in the market. Read more

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• Equipment Leasing – Five Leasing Methods That Improves Cash Flow
• Why You Should Consider Equipment Leasing and Financing
• Practical Tips for Businesses Leasing for the First Time
• How A Startup Business Can Obtain Financing Using Equipment Leasing
• Should You Lease Business Equipment in 2012?
• Equipment Lease Tips for A First Time Lessee
• Starting a Business Through Equipment Leasing
• Leasing Business Equipment with Bad Credit
• Pointers About Small Business Equipment Leasing
• How to Choose the Right Equipment Lease Company

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