Why Get A Small Business Equipment Lease

Posted on | February 17, 2010 | 7 Comments

Do you own a new business or a long time business? If yes, then you may be confronted with the challenge of equipment financing at one point or another. Should you purchase new equipment, get a business loan or should you apply for equipment lease financing?

What are the advantages of leasing business equipment? Below are the main reasons why you should consider business equipment leasing.

Save Your Business Budget. A stable cash flow is vital for just about any business. Leasing equipment frees up your cash so you can save it for other expenses or for emergency purposes.

1. 100% Financing. Yes, no deposit is needed in business equipment leasing. Compared to a bank equipment loan where you have to pay for the cost of taxes, shipping, and installation separately, leasing offers 100% financing which means everything else is covered with your payment..
2. Get Access to the Latest Equipment. Each year, new and better models of equipment are introduced in the market. Not surprisingly, the latest models are more expensive than older ones. If you’re on a limited budget, you may have to settle with the older brands because they are cheaper. Leasing gives you the chance to obtain state of the art equipment without spending a fortune.
3. No To Obsolescence. Equipment you bought this year could become obsolete by the next few years. If you have invested your money on purchasing equipment, it will be impossible and impracticable to repurchase. On the contrary, leasing business equipment allows you to order a replacement at any time you like for just a small cost.
4. Frees Up Your Business’ Line Of Credit. The high price of equipment can eat up a big portion of your business line of credit. That leaves you with a very small percentage of credit line for other business expenses. If you’re going to get a lease, you can save your credit for other expenditures such as buying more supplies, for marketing purposes, or for hiring more workers.
5. Pay In Instalments. Equipment lease financing enables you to pay for the equipment as you use it. You don’t have to give a large upfront payment to obtain the devices you need. You even get to choose the instalment plan (monthly, quarterly, annually, etc) that is most convenient for you as many lease providers offer flexible repayment terms.
6. Enjoy Tax Benefits. Leased equipment is 100% tax deductible. The money you save from taxes can contribute to your business budget. Every cent you can save counts especially for start-up small businesses.
7. Never Complicated. Applying for a business equipment lease is fast and simple. You can shop around and compare different lease offers from the internet and submit your application online as well. Usually, you can expect to get approval within 24 to 48 hours. Once approved, you could obtain the devices you need within 2 to 4 weeks.

About the author: Lai Castillo is an equipment leasing broker that specializes in getting startup business equipment leases.

Comments

Subscribe to our feed

Search

Leasing Programs

• Start Up Businesses
• Established Business
• Bad Credit - Fresh Start Credit
• Industrial Equipment
• Equipment Sale Leaseback
• Vendor Leasing Programs

Recently Written

• Should You Lease Business Equipment in 2012?
• Practical Tips for Businesses Leasing for the First Time
• How A Startup Business Can Obtain Financing Using Equipment Leasing
• 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
• How to Cut Back On Equipment Leasing Costs
• Equipment Leasing – A Practical Method of Business Financing

Categories

• Budgeting
• business financing
• equipment lease
• equipment lease application
• equipment leases
• equipment leasing
• equipment sale leaseback
• restaurant equipment financing
• Small business equipment financing
• startup businesses
• Uncategorized
• vendor leasing