Leasing Equipment for your business - debunking the myths
Leasing Equipment for your business - debunking the myths
Has your technology become obsolete? Is it time to upgrade the computers you run or replace your medical machines? For many types of capital equipment, leasing is a more viable and cash flow friendly option than buying. Leasing can especially appeal to new businesses that are faced with the substantial costs of fitting out their operation before they ever make their first dollar.
Many business owners are misinformed when it comes to their equipment lease options. Understanding more about the differences between equipment leasing versus buying can help you make an informed decision to help your business.
Myth 1: I have to have perfect credit to lease equipment - different lending institutions will have different requirements for granting your business a line of credit. While some commercial lenders may require your business to have an established operating history, consumer based lenders will often extend their offerings to small businesses and start ups.
Myth 2: I can only lease "new" equipment - you can obtain equipment leasing and other forms of asset finance for both new and used equipment. Terms on your lease can be negotiated to suit your business needs.
Myth 3: It costs more to lease - depending on the terms, leasing can often be more cost effective than purchasing, especially as many payments are tax deductible. A financial advisor can give you more information on the cost implications of leasing versus buying your equipment.
Myth 4: I can't own the equipment I lease - many operating leases have a number of end-of-term options, including the purchase of the lease equipment for a negotiated price. The title can then be transferred to you once all of the obligations have been met.
Myth 5: I can only lease certain types of equipment, such as office equipment or vehicles - you can lease practically any equipment for your business. Many businesses will often have their own lending partner and can offer you the convenience of vendor finance- so it's quick, easy and hassle free.
Leasing is perfect for businesses that are looking to free up their cash for other expenses. Technology leasing can also your business avoid obsolescence when your equipment reaches the end of its useful life. Business experts especially see the benefit of leasing depreciating assets - why own equipment that will only be worthless in a few years?
Leasing Equipment for your business - debunking the myths