Equipment Leasing – Helpful for Start-Up and Growing Businesses

Equipment leasing can be very helpful for both start-up and growing businesses because it offers business owners the opportunity to acquire the best equipment available in the market even with a limited budget.

Indeed, purchasing equipment- whether new or second-hand equipment, may require a new business to invest to much of its working capital into buying the equipment it needs. On the other hand, leasing business equipment involves very minimal cost so that the available cash can be used for other purposes such as in business marketing, hiring manpower, training employees, renovating or improving the business location, etc.

What’s great about leasing is that you can actually choose the state-of-the-art equipment which if you tried to purchase it could prove to be to expensive, thus forcing you to buy cheaper maybe even outdated equipment. Using the best of what technology has to offer is a great way to enhance your company’s performance.

It doesn’t really matter whether you are managing a start-up business or an established company. Equipment leasing is a method of business financing open for all kinds of businesses.  Some leasing companies exclusively offer lease services to established businesses but you can also find numerous firms that offer lease financing even to new and start-up businesses.

Let’s say for instance, that you would like to start-up a small business from your home.  You may not have sufficient funds to purchase office equipment such as a computer, fax machine, copier, scanner, etc.  You don’t have to delay your plan to start a business just because you don’t have the money to purchase the equipment you need.

By applying for an equipment lease, you can acquire all types of office equipment at a small cost.  This way, you can use your existing funds as working capital instead of investing a large portion of it on purchasing office equipment.

Many leasing companies also offer specialized equipment for businesses in specific industries.  For example, if you are running a restaurant business, then you should look for a leasing company that specializes in providing the lease of restaurant equipment such as refrigerator, freezer, oven, dishwasher, etc.

Another great reason to consider leasing business’s equipment is that there is no need to worry about the risk of obsolescence.  Since new and better equipment are constantly introduced in the market, you can always choose an equipment lease that will allow you to return the equipment to leasing company after your lease term.   These leases tend to have low monthly payments but large buyouts at the end of the term since the business owner has no intention of purchasing the equipment. If you purchased your business equipment, purchasing new machines to replace what you’re currently using is not an option since you have already made a huge investment.  Equipment leasing does not tie up your business budget on equipment so you can enjoy more flexibility.

Through an equipment lease, a business can significantly minimize the start-up cost and use available finances for other business expenses.  In the same way, a growing business can benefit much from equipment leasing since there is no need to spend a fortune on the purchase of equipment alone.  If you are planning to open a new branch, launch a new product or service, or invest in a new  marketing campaigns, you can use your business budget to support your goal without worrying about how to acquire additional equipment.

 

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