Small business equipment leasing programs provide businesses with an option to finance costs and save the company’s budget. Instead of investing a large sum of money on purchasing equipment, funds can be reserved for other important expenses that require payment in cash.
There are other advantages with leasing. These include quicker and easier process; the risk of obsolescence eliminated, and tax benefits. Lease payments or rental fees are considered as operating costs, thus, greatly reducing tax fees.
When you lease equipment, you have the option to return it to your leasing company at the end of your contract. You may also choose to keep the equipment through the “buy out” option at a low price.
If you purchase, replacing your old equipment will not be a practical choice because it will be expensive. Through leasing, the risk of the item being obsolete does not need to be a problem. You can replace your equipment with the latest model without having to spend a fortune. Yes, businesses can take advantage of the advancements in technology to enhance their marketing performance
What about the process of leasing? Compared to bank loans, applying for an equipment lease is much simpler. A bank loan can take a few months to complete, depending on your qualifications. Meanwhile, you can get an approval for business equipment lease within a day or up to 72 hours at the most. The leasing process can be completed fairly quickly mainly depending on how quickly, you the business owner submit the required paperwork.
Who Qualifies for Business Equipment Lease?
What types of businesses can apply for an equipment lease? Generally, any type of business in any field or industry has the opportunity to acquire this form of business financing.
To avoid having your equipment lease request denied, you must check out the leasing company’s policies and requirements first before submitting your lease application. Some leasing companies only offer service to established businesses and businesses with good credit history. On the other hand, some lease providers have more relaxed policies and do offer special programs for new and start-up business and for business with bad credit or below average credit.
Keep in mind that submitting application to the wrong leasing company could result in a credit denial. Aside from being a waste of time, getting declined can also cause your credit score to drop.
Lease programs also vary depending on the need of your business. It’s a good idea to evaluate each program offered by a potential leasing company so you can choose the program that meets the demands of your company.
About the author:
Lai Castillo is an equipment leasing broker that specializes in getting start up equipment leasing and providing articles in finding solutions for Leasefunders.com. For equipment lease application visit leasefunders.com.