Many small businesses or those which are starting up prefer leasing equipment rather than buying the equipment outright. Banks have also recognized this trend and they are now giving loans to small businesses. Today, leasing equipment is a common trend for business owners. We have been proving leasing services for many years to small business owners and those businesses which are starting up to ensure that they are able to use business equipment which they cannot afford to buy. There are many benefits which a business owner gets by leasing equipment at any stage of development as illustrated below:
There is minimal cash outlay for equipment leasing!
When your business requires many computers, buying them requires you to have large capital outlay and reduces your cash flow. In addition, the cost of maintenance & repairing them will be high. By leasing our equipment you will be able to conserve cash from your business and improve your cash flow capital. Equipment leasing services does not include servicing the leased equipment in case they fail therefore you will save both maintenance and purchasing equipment at the end of equipment lease.
Overcoming budgetary limitations!
If you have a small budget that is not enough for buying new business equipment especially if you are starting up a business, leasing can be the best option for your business start-up. Operating budgets tend to be more flexible than a capital budget and we can ensure that our leasing terms are flexible as required by law and also negotiable depending on your business needs. Moreover, our leasing terms are better than standard bank loans thus making payment even more better and flexible.
Avoidance of obsolescence!
Obsolescence is among the major problem which many businesses face because the technology changes from year to year. However leasing equipment allows your businesses to develop since our lease terms can be structured in a way that can handle these changes. Therefore, your business will have a solution to the equipment which depreciates quickly. Plus our leasing terms makes it easier to add or upgrade technology in order to meet the ever changing needs of your business.
Speed!
Sometime buying some equipment may involve a lot of documentation thus making the whole process to take long period of time before it is completed. However, this is not the case with equipment leasing. Leasing allows you to respond quickly to new opportunities with little documentation & red tape. Equipment leasing companies can approve applications within a few hours.
Flexible in terms of options!
When you lease equipment for your business, you will have three options at the end of the term: you can opt to return the equipment, extend the lease for an additional period of time or can purchase the equipment from the leasing company at the end of lease term. These options are not available when you buy your own business equipment.
Tax benefits!
Equipment lease rental payments might be fully tax deductible and can come out of your business funds before they're taxed. If you buy new machines from your working capital, it means that you are using money that you have already paid taxes on. Therefore, this means that by leasing equipment, the total cost of ownership can be lowered for your business.