The Big Benefits of Equipment Leasing
More and more, businesses are turning to equipment leasing rather than purchasing equipment. The reason for this is that there are many benefits to leasing business equipment. It can free up capital for other uses, accommodate the growth of a business and improve the quality of equipment that is used.
Free Up Capital
For any business, cash flow is critical. Cash is necessary for many day to day functions that allow a business to keep its doors open, such as paying employees, overhead expenses and marketing materials. Purchasing equipment brand new equipment can be extremely expensive. Paying for it outright can cost upwards of tens of thousands of dollars. Even if your business chooses to finance the purchase with a loan, you will still need thousands of dollars in a down payment. To free up capital for your business, you can lease the equipment instead. In some cases, a small deposit is required, but it would be considerably less than what is needed when purchasing equipment. Additionally, leases have fixed monthly payments. This allows your business to better manage its finances with a known payment over a fixed period.
Accommodate Business Growth
If you are planning to expand your business soon, you can sign a master lease. This allows you to add pieces of equipment at the same terms of the existing contract without having to do any negotiating. A master lease could also be beneficial to have in the event of unexpected growth. While this is great for your business, it could mean that you are short on equipment since the expansion was unanticipated. When you are leasing business equipment, it can be easy to add on additional pieces to the existing contract.
Improve Quality of Equipment
When you purchase a piece of equipment, most businesses like to purchase the best in the industry. The only problem with this is that in a year, the equipment will already be outdated. There will be a newer model available that is even better. But if your business has purchased the equipment, you most likely will not be able to purchase the newest model every single year. That is one of the benefits of leasing business equipment. When the lease has ended, you can upgrade to the most recent model to ensure that your business is always using the best quality equipment on the market.
Leasing business equipment has many benefits. Increasing cash flow, accommodating business growth and having access to top of the line equipment are just some of the many benefits your business can experience from leasing needed equipment.