Small Businesses

Why Lease Equipment for Small Businesses?

You may face the problem of equipment financing, no matter if you own a new company or are an existing business. Is it better to purchase new equipment than to get a loan from the bank? You might also consider leasing equipment financing.

What benefits can equipment leasing bring to small businesses? This article will discuss the main reasons you should think about business equipment leasing.

Save Your Business Budget.

For any business, it is vital to have a steady cash flow. Lease equipment allows you to use cash available for other expenses, and keep the rest for an emergency.

100% Financing.

No down payment is required for equipment leasing. Leasing equipment is 100% financing. This is in contrast to a bank equipment loan, where you have to pay the cost of shipping and taxes separately.

Get access to the most recent equipment

Technology is continually improving, which means that newer models of equipment are introduced into the market. The latest models will be more expensive than the older models. Equipment prices may not allow you to purchase state-of the-art equipment. Leases allow you to choose the equipment you need without worrying about the price.

There is no such thing as obsolescence.

The equipment you buy now could become obsolete within the next few years. The only way to limit your options is to purchase equipment. You have already made an investment in the equipment. Leasing equipment allows you to choose whether to keep or replace equipment.

Your Business’ Credit Line Will Be Increased

You can use your bank loan to purchase equipment. However, the high cost of the equipment could reduce your business line credit. You don’t have to limit your business credit line if you lease equipment. You can apply for a loan to purchase more equipment, market your business, or hire more employees.

Pay In Installments.

Only equipment leasing financing allows you to purchase the equipment only when you actually use it. It is not necessary to pay a large sum of cash immediately. Many leasing companies offer flexible repayment terms and can help you choose the installment plan that suits your needs best.

Take advantage of tax benefits

Leased equipment is 100% exempt from tax, which is not the case with purchased equipment. You can imagine how much you could save just by taking advantage of the tax benefits. Even if your business is just beginning, every cent you save matters.

Never be complicated

It is much easier to apply for a lease of equipment for your business than for a loan or bank loan. Online comparisons of leasing companies are possible. You can also submit your application online. Most leasing companies approve applicants within 24 to 48 hours. Once you have been approved, you will be able to order the equipment within 3 to 4 weeks.

molw.net

We are a team of professionals with each having two decades of experience in start-ups, sales, marketing, finance, HR, large scale project and profit centre management and running mature cross functional operations. At Molw.net we are big believers that knowledge transfer is critical to our industry’s evolution. We love to share our experiences and learnings through our online resources.

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