Finance & Lending

 

04 19 2013

04 19 2013

Small Businesses Benefit from Equipment Leasing

Although a small business owner may mainly enjoy the cost-effectiveness of equipment leasing, other benefits exist as well. In addition to reducing overhead costs, leasing equipment also offers small business owners greater ease and flexibility.  A recent Entrepreneur article outlined what advantages leasing equipment can offer small business owners.

Lower short-term costs

When a small business owner leases a piece of equipment instead of purchasing it, he or she is relieved of the pressure of having to pay the full price up front. Most small business owners know that effective tools make the workday run more smoothly, which bolsters productivity. Using equipment that is up-to-date may also prevent accidents and reduce the risk of injuries at the work site. Investing in higher quality items also curbs costs that could arise from the equipment breaking down, working inefficiently or wasting energy. Acquiring top-of-the-line equipment, however, is usually expensive. The option of leasing offers business owners a way to gain access to the latest technology and models without having to pay the hefty price tag.

Equipment leasing is a popular option for many industries that rely on having cutting edge devices. The medical and dental industries, for example, often lease their equipment to stay abreast of rapid technology developments. In fact, Global Industry Analysts (GIA) recently released a report that revealed the global market for Medical Equipment Rental and Leasing will increase to $56.8 billion by 2018, due to the high cost of tech upgrades and shrinking budgets.

Ease and efficiency

Traditionally, it is easy for small business owners to get approved for a lease. Leasing frees up a business owners’ lines of credit, so he or she has more credit available to use elsewhere.

Leasing equipment also makes it easier for business owners to make upgrades. As technology is always evolving, many tools used at the worksite become outdated quickly. Rather than having to buy new models every couple of years, a business owner who leases may easily exchange older equipment with newer technology once the contract expires.

Additional savings

Thanks to Section 179 of the U.S. tax code, business owners can deduct up to $500,000 for equipment leased during 2013.  However small business owners must take advantage of the change in the tax code, as the deduction amount of Section 179 is set to be drastically reduced in 2014.

Small business owners who are interested in leasing equipment to keep their company running efficiently and cost-effectively may contact National Funding to learn about the many lending options available to them.

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Any applications submitted electronically shall have the same force and effect as if the application bore an inked original signature(s). The above information, together with any accompanying financial statements, schedules, or other materials, is submitted for the purpose of obtaining credit and is warranted to be true, correct, and complete.

 

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To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person and business that seeks a business loan. What this means for you: When you apply for a loan, we will ask for your business name, address, and Tax Identification Number. We will also ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents.

 

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The Merchant and Owner(s)/Officer(s) identified in the application (individually, an “Applicant”) each represents, acknowledges and agrees that (1) all information and documents provided to National Funding, Inc. (“NF”) including credit card processor statements are true, accurate and complete, (2) Applicant will immediately notify NF of any change in such information or financial condition, (3) Applicant authorizes NF to disclose all information and documents that NF may obtain including credit reports to other persons or entities (collectively, “Assignees”) that may be involved with or acquire commercial loans having daily repayment features and/or Merchant Cash Advance transactions, including without limitation the application therefor (collectively, “Transactions”) and each Assignee is authorized to use such information and documents, and share such information and documents with other Assignees, in connection with potential Transactions, (4) each Assignee will rely upon the accuracy and completeness of such information and documents, (5) NF, Assignees, and each of their representatives, successors, assigns and designees (collectively, “Recipients”) are authorized to request and receive any investigative reports, credit reports, statements from creditors or financial institutions, verification of information, or any other information that a Recipient deems necessary, (6) Applicant waives and releases any claims against Recipients and any information-providers arising from any act or omission relating to the requesting, receiving or release of information, and (7) each Owner/Officer represents that he or she is authorized to sign this form on behalf of Merchant.(8) I consent to receive direct mail, faxes, text-messages, and e-mails sent by National Funding and its affiliates for the purposes of transmitting account updates, requests for information and notices, and (9) this request is for business and not for consumer purposes.

 

For Equipment Services:

I hereby certify: (1) the information provided is true and correct, (2) you are hereby authorized to investigate all bank, credit, and trade references, and said references are hereby authorized to release any requested information to you or your nominee, (3) such authorization shall extend to obtaining personal credit profile in considering this application and subsequently for the purposes of update, renewal or extension of such credit or additional credit and for reviewing or collecting the resulting account, (4) this information may be transmitted by us to you and by you to underwriter(s) for the purpose of granting me credit, either electronically or manually, and that by submitting this application, I take full responsibility for transmission thereof, (5) I am over 18 years of age, (6) I acknowledge my rights under the Fair Credit Reporting Act, (7) I consent to receive direct mail, faxes, text-messages, and e-mails sent by National Funding and its affiliates for the purposes of transmitting account updates, requests for information and notices, and (8) this request is for business and not for consumer purposes.

 

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