subject: How Leasing Can Get Your Business The Latest Equipment [print this page] When you run your own business, there will be times when you need particular tools and equipment in order for it to progress. This equipment could be what makes your company operate and without it your business will be unable to work. How would you be able to keep going if it broke down or was damaged to the point where it could not be used? Would you ahve enough capital to be able to replace or upgrade your equipment or would you have to take out a loan in order to replace it? This could be a problem if your business cash flow is not good or if the piece is expensive. Having to draw on your company's funds could leave it vulnerable and this is especially so during these tough times. Taking out a loan may not be very easy as banks are not lending so much money and unless your company has a spotless financial history, it might not be possible to obtain a loan at all or it may be offered it at higher interest rates.
There are of course other options, leasing for example. Leasing can be a real boon to a business but there are of course considerations to be made before taking the plunge. Although you will not have the initial capital costs of purchase to bear, the overall costs will be more than if you purchase outright. However, your lease will be paid for in easy instalments and will therefore be easy to manage and you will know exactly how much and when payments are due. Another good point with leasing is that you are unlikely to have to pay a large deposit or require collateral in order to obtain your equipment. This could be a huge advantage if you are setting up a new company which will have no financial track record or if your company has used up other avenues of credit. It is vital to look at all the options that are on the table as you must ensure that you are getting the best value for your business.
Before you decide anything, do consider carefully the piece of equipment you need. How much would it cost to buy? Can you lease or rent the item and if you can, what will it cost to lease or rent? How long is it likely to be in use for? Is it likely to become obsolete during this time? If it is important for your business that your equipment needs to be kept current, leasing might just be the best way for you to proceed. An apparent advantage of leasing the equipment that becomes obsolete is that you will be able to upgrade it quite easily every few years. This might just give you a good advantage over your competitors who choose to purchase as they will have to spend either capital or take out a loan so that they can renew.
When it comes to acquiring new equipment, you do have choices and you can combine them all if this would give your company the edge AND value for money. Always read all the small print carefully, work out all costs and decide what will make the most economic sense for your business to proceed.
