Equipment costs are a huge business expense, whether you are purchasing the equipment to start your business or upgrading your machines to the latest technology. With so many businesses running on thin profit margins, equipment financing decisions can make or break a company.
Seasoned business owners know that leasing equipment is a much more profitable choice than purchase for many reasons.
Financial advantages of equipment leasing:
Financing new equipment usually means taking a bank loan with the associated fees and interest. During this time, the equipment loses value faster than balance of the loan decreases, leaving the business in a negative asset situation. If the equipment needs to be replaced before the loan is paid off, it must be sold at a loss and another loan secured to purchase new equipment.
With leased equipment, the business pays for the equipment only as long as it is useful. If the company ever wishes to upgrade to newer technology, the old equipment is taken away and new equipment delivered. With a new lease in place, equipment financing continues as before without a loss of assets.
Technological advantages of leasing equipment:
Today almost every piece of equipment a company acquires is obsolete long before it stops working. With the substantial costs of upgrading, companies can be forced to use old machinery when more efficient options are available.
Leasing equipment allows a company to upgrade at any time, staying on the leading edge of technology and getting an advantage over competitors still using traditional purchase arrangements.
Finding equipment to lease:
With leasing being such a cost-effective choice for businesses, there are plenty of equipment leasing companies competing for your business. Shopping around allows you find the company that provides the best terms for your unique business needs.
When evaluating leasing companies, consider more than just your bottom line payments. The terms and conditions of a lease can vary widely so read them carefully to ensure you are getting the contract your organization needs. Features such as approval time or payment deferral options can make a contract even more attractive.
How equipment leasing brokers work:
Shopping equipment financing options can be a daunting task, which is where a broker can help. Brokers handle all of the legwork and have the expertise and contacts to find the best terms, prices, and conditions. Best of all, the service costs you nothing.
Because brokers represent a wide range of leasing companies, your business gets the advantage of more leasing options, thus improving your chance of finding the perfect deal to maximize company profits. By forming a partnership with a qualified and experienced broker, you give your company a competitive edge over other providers in your industry