Leasing Your Equipment Can Do Wonders for Your Business

Leasing Your Equipment Can Do Wonders for Your Business As a successful entrepreneur, you ensure that your company is always up to date. To do this, you need to regularly invest in new technology and equipment. But what if you don’t have the funds? With the leasing payment method, you can finance necessary purchases quickly and easily while remaining liquid at the same time.

Planning an investment? Here too, leasing can be a better option than buying. Leasing saves your liquidity and allows you to finance your purchase over a flexible period with a low monthly charge.

There are various equipment leasing finance companies that provide medium-sized companies the opportunity to always be optimally equipped without tying up capital unnecessarily.

Before we delve deep into the discussion of why you should be leasing your equipment instead of buying it, here are some highlights as to why you should choose to lease over buying in the first place: ● Leasing is worthwhile especially for small and medium-sized business ● Protection of your liquidity and your equity ● Cost neutrality: Your leased equipment earns its own installment ● Flexibility: Your credit line with the bank remains unaffected ● Tax advantage: Your leasing installments can be fully activated

● Transparency: Your desired contract term creates a clear calculation basis for you Expand your investment scope by using a financing plan tailored to your needs when procuring your equipment. It allows you to work inexpensively and efficiently and thus put the competition in the right place. This way, you can also grow your earnings for further entrepreneurial activities.

WHY FINANCE? Finance 100% Your Cost In most cases, the full amount of equipment and soft costs such as maintenance contracts, installation, freight, VAT, accessories, training, and other services can be included in the monthly lease payment. This spreads the cost evenly over the term of the lease and frees your money to work harder in other areas for you.

Flexibility As your business grows and your needs change, leasing gives you the flexibility to add or upgrade your equipment as needed through add-on or master leasing. Payment plans can easily be set or postponed to match your cash flow and budget.

Flexible End Terms Options There are several options for disposing of equipment after the rental period ends including returning equipment, renewing the rental or purchasing the equipment.

Flexible Payment Plans Leasing is flexible. Unlike a traditional loan, you can get a variety of payment plans conducive to your cash flow structure, for example; no payments for a certain number of

days, step up — step down, and seasonal payments. All you need to do is find the right leasing finance specialists that offer a payment plan based exclusively on your business needs and budget.

Protect Yourself from Technological Obsolescence Advances in technology are so rapid that today’s state-of-the-art equipment can become old within a year. With an equipment lease, you transfer the risks of ownership and technological obsolescence to the owner. Leasing enables you to acquire optimal technology without acquiring the assets and bearing the associated risks and costs.

Balance Sheet Management Becomes Easier Leasing helps you manage your balance sheet as an asset and the entire monthly payment is recorded or treated as an expense as a budget item. You can potentially increase your creditworthiness while improving metrics like return on assets and debt/equity.

Lease Financing Options In most cases, lease payments are treated as an expense on a company balance sheet; therefore, equipment does not have to be written off in more than five to seven years.

Increase Your Cash Flow The fixed nature of a lease removes uncertainty about the future cost of the equipment.

Your lease payments make more accurate forecasting and planning easier.

Financing from Balance Sheet

Leases are not required to be reflected on a balance sheet as debt, making your business more attractive to potential lenders. Since an operating lease is not considered a long-term debt or liability, it will not appear as a debt on your close, which makes you even more attractive to traditional lenders when you need them.

Overcomes Budgetary Position Commercial equipment Leasing enables you to use your existing budget by avoiding large down payments. Small monthly costs for leased equipment can fit into restrictive operational budgets.

Provides a Hedge Against Inflation Lease payments are set in such a way that it keeps the value of your spending unaffected by the effects of inflation. Buying equipment is significantly more expensive and diminishes the value of your dollar.

Tax benefits Depending on the structure of the lease, your entire monthly payment, including interest, may be written off as a deduction for the entire term.

Now that you know what makes leasing your equipment a far more beneficial choice than buying, the next step is to contact the right equipment leasing provider for your business. Contact Vendor Lender to enjoy all the benefits mentioned above for your equipment financing!

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