Advantages of Equipment Leasing
Whether you’re looking for construction equipment, medical devices or the latest computer technology, an equipment lease is an excellent financial tool for getting the equipment you need. Discover how equipment leasing can propel your business forward and give you the tools you need to provide comprehensive services immediately.
An equipment lease is a fast and flexible way to receive your equipment. Unlike other financing options, it’s relatively easy to receive a lease. There are a few basic ways you can use a lease to secure the tools and equipment you need. First, you can simply pay a monthly payment for a predetermined amount of time. At the end of the lease, you can return the equipment and continue to provide alternative services or sign another lease.
Another option is to purchase the equipment you’ve been leasing. Many lenders will give you a discounted price, allowing you to make payments on equipment until you’ve paid it off or pay a lump sum at the end of the lease term. This allows you to start using costly equipment from day one, but also own it at the end of a year or other set amount of time.
Finally, you can renew your lease with the latest model of equipment. This strategy is particularly effective if you are leasing equipment that is quickly outdated. Computer technology, for instance, is often obsolete by the time your lease ends. Simply renew the lease, renegotiate terms and receive the latest model of the same equipment for hassle-free upgrades. This makes it easy to stay at the forefront of your industry without major expenses every year.
Discuss your options with your lender before signing a lease. Some leases come with hidden fees, and many lenders wish to know your lease type before you sign. Whether you’re renew, purchase or upgrade, it’s important to communicate this as early as possible for the best rates. Build a relationship with a lender to secure greater rates for your next lease.
For small businesses that are just beginning, you may have to make a down payment or put up additional collateral to minimize the risk of equipment leasing. Some lenders are hesitant to work with a business that doesn’t have at least two years of experience. Once you’ve found the right equipment and lease for your business, enjoy a flexible way to expand your business and launch a new line of services with the latest tools and equipment.