Is leasing the best option for a company? What are the current equipment lease rates?
Nowadays, businesses are extremely complicated to set up and run, simply because there are so many factors that companies are currently aware of, mainly in the marketing field. Starting up a business has become so precise in the sense that one wrong move could mean the end of your company, which is why when you start your business, you want to start it up right.
Everything needs to be researched and planned out, especially considering you’re guaranteed to have a very limited budget. Most businesses start up purely on capital and loans, which is risky business considering you have to pay them back with interest.
With so much to pay for like employees, stock, utilities, rent, equipment, licensing, fees, and more, having ways to reduce how much you need to spend can help you allocate your funds better. Unfortunately, there is a level of quality you want in many parts of your business, so you don’t want to spend too little, either.
The option of leasing comes up for many company owners, especially those with higher equipment needs like restaurants and gyms and such. Leasing allows business owners to pay for equipment in a more manageable way while having the hardware rented to them, but do current equipment lease rates really provide a better option for a business?
Advantages and Disadvantages of Purchasing your own Equipment
Many company owners would just rather purchase their equipment, mainly for the sake of owning it, which is understandable. In fact, purchasing can be very useful as far as equipment, considering whatever hardware you purchase gets to be claimed as a business asset, meaning you get funding for it.
However, it’s recommended that when you purchase equipment, it is easily replaceable or isn’t essential as far as perfect quality. For instance, many businesses will purchase smaller tools that they need, simply because the tool breaks or lowers in quality, it’s no big deal, and they can replace it whenever they want to.
The game changes with other types of equipment; a good example is a computer, something that just about everyone owns. With your own personal computer, you most likely replace it once every three to five years, and it’s not an issue simply because you pay a few hundred dollars every few years, and your way of life doesn’t absolutely depend on the quality of that computer.
With a business, say you need a few computers to run your company, and they need to be the best ones available. In a few short years, when all of your computers begin to go and you need to replace them all and get the upgraded version, it becomes much trickier to handle, especially when you’re a newer business.
With more expensive hardware, purchasing is tough enough to handle, but when you have to pay so much to replace it within a few short years, it becomes that much more of a burden on a business.
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Do the Current Equipment Lease Rates make Leasing Viable?
Many business owners look at leasing as an alternative, simply because they realize they don’t need to buy the equipment that runs their business and they want a better option. With leasing, you pay the current equipment lease rates, which do vary depending on the business but are both low and flat, and you get the hardware you need for the allotted time.
A lease is a pre-determined contract, meaning you don’t do anything until you are sure that the lease is more suitable for you. That’s why it’s ideal to do research on the lease you get before you actually get it so you don’t get stuck in a bad contract.
With a good lease, all you have to do is pay those low, monthly rates and the equipment’s all yours; any issues that come up with the equipment like repairs are handled for you as well. Plus, many leasing contracts give you the option to upgrade your hardware, meaning you get the best, new equipment and don’t fall behind your competitors.
Leasing gives you the freedom to spend your funds as you please and not have to worry about high, up-front costs or interest rates. To learn more about the current equipment lease rates and how leasing works, click here.