One of the main problems that people run into when they are first starting their business is that they do not have a lot of money to pay for office space or the equipment that is required to run their business.
One of the advantages of leasing is that it helps business owners get started right away without the difficulties involved in processing a SBA loan or refinancing your mortgage. With an equipment lease, you can easily lease to own items such as computers, fax machines and printers. There are many advantages to leasing equipment instead of using your working capital to buy it cash.
Here are the top 5 advantages for leasing your office and technical equipment
The Top 5 Reasons You Should Be Leasing Your Office Equipment
- Cash Flow – Opening a new office can take an enormous amount of cash. You have to consider the office space rent (usually 2 months down – sometimes even more if you have credit problems) . You need to turn the lights on in the office. For people with good credit that is as easy as signing a contract. For those with credit problems it can mean an additional security deposit. Then there are essentials such as phone and internet. Again that can mean putting down security deposits.
- Ease of Approval – depending on the equipment leasing company you use, getting approved for an equipment lease can be rather simple and easy. You need to take the time to call the company you want to work with and make sure they can work with your company. Things you need to ask are – do they work with start up businesses (any business open less than 3 years) – know what your credit score is and make sure it meets their minimum requirements. Ask them if they will finance your type of business. For instance, here at leasefunders.com we can’t provide financing for things like vending routes. We can provide financing if someone is puting a vending machine in at their location, but we can’t do routes.
- Option to lease to own or return the equipment. Leasing is very flexible. You can lease to own a piece of equipment, meaning at the end of the lease contract you own it. Or you can choose to rent it but at the end of the lease term, you have the leasing company come and take it back. This works well for high tech firms who generally update their equipment every 2 – 3 years.
- Preserves working capital . As a cash buyer, you are limited by the amount of working capital you have on hand. Butt hat working capital needs to be split up between the day to day running of your business and also buy you the cutting edge equipment you will need to compete against your competition. Leasing your equipment will help you free up your working capital for other purposes.
- Tax deduction – this is one of the biggest reasons big corporations will lease their equipment. The lease payment is 100% deductible which adds up to a considerable savings your your taxes!
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- Why you Should Consider Equipment Leasing and Financing
- Starting a Business Through Equipment Leasing
Leasefunders.com specializes in providing equipment lease financing for start-up businesses and businesses with bad credit. Hard to fund deals are no problem for us! Let our 21 years of experience in business financing help you to get the financing you need.