Business Equipment Leasing 1-2-3
When you start a business, you may not have the money to buy lots of equipment and supplies up front.
Fortunately, you do not have to buy everything you need, you can lease it. Once you have your company up and
running, you may be in a better situation to easily afford to invest in business equipment.
Another time where you may find leasing business equipment cost effective is if you decide to grow the size
of your company, but don't want to risk the big expense of purchasing large amounts of equipment. Again, you
can lease until you are ready to buy.
But why else would you would want to lease business equipment?
- Flexibility and freedom. Leasing can end up costing your company more money in the long run,
however, it can give you the capital and flexibility to start and grow your business when you need it. In
turn you can generate more revenue that far outweighs the expense of leasing.
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- Easy Upgrades. Will your equipment need to be continually upgraded? You also should consider the
type of business equipment you will be using. If it will need to be upgraded every few years, you may find
that leasing may be a better option for you.
- Tax deductible. Lease payments are generally deductible as a business expense. This, of course,
lowers the actual cost of the lease (something to think about when comparing the cost of leasing vs buying
equipment).
- You don't get stuck with used-up equipment. Remember, when you've used up your equipment or are
ready to upgrade to the next model, if you own your hardware, it's you job to get rid of them. When
leasing, you do not have to hassle with this responsibility.
When looking for equipment to lease, it's a good idea to get price quotes from several vendors. There are a
few online networks like Resource Nation that let you get bids from multiple companies at once. The benefit
to using a service like this is that the competing vendors know that you are considering multiple vendors -
and in order to win your business, they know they need to offer you a great deal.
Since we know this is a competitive market, don't be afraid to negotiate lease rates and purchase price with
any leasing company that you deal with. You have nothing to lose.
Need a lease agreement form?
Do-it-Yourself Equipment Rental
Agreement
Something to note: many leasing companies offer lease-to-own options, but keep in mind that the company
leasing the equipment may not be the same as the company that actually sells the item. The seller could
actually be working with several different leasing agents.
Business Equipment Leasing:
Equipment leases and equipment loans can carry a higher interest rate than the traditional loan
from your bank, but the benefit is that they are usually easier to obtain. Applications do show up on
credit reports, so keep that in mind when submitting applications.
If you are unable to obtain equipment lease financing, you can alternatively get an unsecured loan
through America One Unsecured. They provide business loans for start-up
ventures, and there are fewer requirements than traditional bank loans.
