Equipment leasing what is your decision?

June 13, 2017 EQUIPMENT LEASING ­ WHAT IS YOUR DECISION? Equipment Leasing ­ Go for it or not ­ What is your decision?

There are two options in front of you ­ Buy Equipments or Lease Equipments. Which one will you choose?

These days many have started opting Equipment leasing services. Instead of buying equipments you can use the equipments of office supplies provided by the rental company for a certain amount on a monthly basis. Here the ownership of the equipments will be with the Financing company or the Lease Service provider, but you can utilize the usage of the equipment till your contract period ends.

The popularity of Equipment leasing companies are increasing on the heels of demand. More and more business houses have started opting for equipment leasing. A survey states that more than 58% of American companies are following the equipment leasing procedure. While comparing with permanent buying of equipments, the company's feel like equipment leasing is the best option. By this they are able invest a major amount in their major projects or any other investment vehicles that can bring profit to the business.

When do you think about equipment leasing and why?

Just imagine you are going to start a business. If you have a small business that requires either one or two computers and other accessories then it is better to think about buying the equipments.

Because, taking two or three equipments for lease is not going to benefit you in a larger way.

If the office you are planning to start requires 25 to 80 computers, office equipments and office supplies, then you should seriously think about renting the equipments. While comparing with the idea of buying the whole equipments, it is better to lease it as the company is able to use the amount that may have spend on the equipments for other purpose.

Decision on Equipment leasing:­ Before making a decision you should compare the leasing cost with the current interest rate. A close examination of both will allow you to check whether your decision to lease the equipments is right or not.

Next is to check your savings. Calculate your monthly savings and see whether the monthly lease payments affect your business profits in a positive or negative way. You should also check the savings numbers to the cost of purchasing the same equipment. Which side weighs more?

The Lease Association of America states that more businesses have started opting for leasing equipment services as it is considered as a more profitable route than the other.

A business have two lease agreement choices­ Closed­end lease and Open­end lease.

In the close­end lease you just not have any obligation when the lease period ends. When the lease period ends you just have to submit the equipments to the Leasing service provider and walk

away. There are cases where some business opt for paying the lease amount by the end of the contract. It is advisable not to follow such practises, but circumstances may force some business to follow this format.

For open­end lease, the agreement will be written in such a way that the moment the contract ends and when you return the equipments to the leasing service provider the value of the equipment till that period will be checked. If the value is less or the equipments value has diminished then you have to pay the difference. Those who opt for open­end lease agreement ensure that they are not signing a deal that includes wear and tear cost.

Today there are lot many leasing companies and financial service providers who offer equipment leasing and IT leasing services at attractive rates. While you are proceeding with equipment leasing services ensure that your choosing a reliable leasing service partner.

Equipment Leasing Services ­ Grenke Grenke is a name that is holding a major share in the leasing service industry. With its years of experience in the field the company is serving its clients in an exemplary way. Visit the company website to get more details on the various services provided by them.

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