Beyond Finances: Why Equipment Leasing Makes Sense
The financial benefits of an equipment lease are clear to small business owners across the nation. That’s why data indicates 85 percent of all companies lease equipment, and that 89 percent of these companies plan to do so again in the future.
In fact, 75 percent of all companies that lease equipment say leasing is their best means for financing equipment purchases.
The various types of equipment leases available provide business owners with a chance to acquire high-end equipment they might not otherwise be able to afford, not to mention the promise of special tax breaks down the line.
However, the advantages of equipment leasing go well beyond the monetary.
Buying equipment is one thing, but what about maintaining it? Leases give small business owners the option to structure their arrangement to include installation, maintenance and other necessary services.
Even businesses that have the funds necessary to purchase equipment know they must constantly play catch up. If it seems like a new piece of updated equipment is released to the market every day, it’s because it’s not far from the truth.
Leasing is the ideal option to remain on the cutting edge of business equipment, making it easier to obtain state-of-the-art tools and machinery, whether it’s for a restaurant, medical practice, general office environment or anything in between.
Ease of use
Applying for a business loan from a bank can be a long, complicated process that involves reams of paperwork and lengthy wait times. On the other hand, leasing equipment instead of borrowing money to buy it gives business owners a simple, straightforward way to get what they need. Owners can also avoid requirements like compensating balances, large down payments, client list reviews and cash-flow projections.
Variety of options
Finally,equipment leases come in all shapes and sizes. This means small business owners can count on finding an option that suits their specific needs.
For example, one type of equipment lease is the Purchase Lease. This is a traditional lease agreement with low monthly payments that allows owners to purchase leased equipment at the end of the lease, renew the lease or return the equipment.
Meanwhile, with the Dollar Buy-Out Lease, you can purchase your equipment for just $1 at the end of the lease term. This typically means higher monthly payments, but it remains a great option for business owners who believe the equipment they’ve leased will not significantly decrease in value by the time their term ends.