Why Businesses Lease Equipment And How You Can Help Your Clients
If you're an equipment supplier or distributor
, you'll have a loyal and reliable base of customers that will make up a significant portion of your business. You'll be looking for ways to deliver more value and really look after their needs so that you'll remain a supplier of choice.
You may not be surprised to learn that a significant percentage of your clients - and in fact many small businesses in general lease the equipment that they acquire for their operations. Leasing provides businesses with a number of clear advantages over purchasing the assets outright. You may find that your own business could benefit from this type of asset finance.
Why do businesses choose to lease equipment?
Leasing provides businesses with a number of benefits especially in today's uncertain marketplace. Specifically, leasing gives SMEs the ability to:
-Avoid equipment becoming obsolete - in many industries, new technology and innovation means that businesses will need to regularly upgrade and invest in new equipment in order to stay up to date. Obsolete equipment can really harm a business's operation as it can cause frustration for both staff and clients and result in a number of inefficiencies.
-Bundling equipment payments together - for businesses that require equipment and assets across all areas of their operations, leasing offers a convenient bundling solution that allows them to easily and effectively manage their business cash flow for the longer term.
-May be able to deduct lease payments from their taxes - because businesses don't own the assets outright but are instead leasing them for the short term, they'll find that after speaking with their financial advisors or accountants that their monthly payments can often be tax deductible.
What can you offer to your clients?
As a supply business, you can give your customer base something that will help them with their business operations. By offering vendor finance and partnering with a reputable third party financier, you can deliver more value for your clients and expand your customer base. Businesses are already shopping for finance solutions for their capital equipment needs doesn't it make sense for your business to offer a solution for them?