An equipment lease calculator has several benefits but not all calculators generate real numbers.
Equipment leasing is a wise decision and provides a way to hold on to cash while still staying up to date with the latest technology upgrades. It is one of the fastest methods of procuring equipment today. It does not require any down payments unlike with a bank loan where you have to make a down payment of up to 20% of the equipment cost upfront.
Fixed rate financing is another reason why leasing is so attractive to many business owners. You can acquire income-generating equipment with only a low monthly payment. Monthly payments are fixed and structured in such a way that they can accommodate the needs of your company.
Benefits Of An Equipment Lease Calculator
An equipment lease calculator can help you calculate estimated monthly payments on the equipment you plan to acquire. It is very easy to use. Most lease calculators require you to fill in the amount you want to lease and then select the number of months to calculate monthly payments.
From there, you will be asked to complete your online credit application after which your lessor will process your application and get back to you with a credit decision. Some leasing companies require you to contact them if you want to lease equipment worth over a certain amount of money over a certain period of time. The entire process is actually very fast and can take a maximum of 24 hours.
Disadvantages Of An Equipment Lease Calculator
The disadvantages of an equipment lease calculator are numerous and tend to outweigh the benefits. For instance, the numbers generated using the lease calculator may be false and can easily lure you into a bogus deal. Some equipment leasing companies have been known to use excel spreadsheets to generate false numbers in an attempt to lure naïve prospects into leasing with them.
What these prospects do not realize is that a good lease is not all about low monthly payments; there are other factors to consider such as interim rent, end-of-lease options and fair market value, which can transform your lease into one costly transaction.
There are also other extra expenses to consider such as maintenance and repair of the equipment in case it breaks down, lease extension costs and penalties for early termination of a lease.
Select The Right Leasing Company To Work With
While most equipment leasing companies may use a false equipment lease calculator, not all of them utilize it. You should instead look for a company that gives you instant quotes on the equipment that you need.
The main reason for choosing to go with leasing as compared to other forms of acquiring equipment is the fact that you want to save money. This means that you have to find a finance company that is willing to put cost caps in place. This includes putting caps on costs like end-of-lease buyouts, extensions and interim rent.
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The company has also to be well established. There is no point in finding a leasing company that offers the lowest leasing rates yet it is not well established. This is because you will end up paying for poor services and mismanagement. If the leasing company also has financial problems, this will affect you directly.
Lease rates are not important when selecting the right equipment leasing company. You should however keep in mind that a lessor who insists you use their equipment lease calculator should not be trusted.
When leasing, many prospects end up using the lease calculator and the results are hardly ever desirable. For this reason, it is up to you to do your homework on different leasing companies in order to determine which companies are reputable and which ones aren’t.
Business owners who do their research are likely to end up with better deals and end up paying less for their equipment. If you rely solely on the estimates you get from these faulty equipment lease calculators, you might end up paying more than you should. In fact, don’t be surprised at all when you find that you have to take out a loan in order to finance your lease and when this happens, your business won’t be able to respond quickly in times of crises.
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