How to apply for a lease: is it really the best option for you at this time?
Don’t give up, the process is long and frustrating for many businesses. The good news is that it’s getting easier than ever to lease the equipment you need thanks to new equipment leasing technology.
And the more research you do on equipment leasing, you’ll soon realize that there are many benefits of leasing versus renting or making an outright cash purchase.
Keeping Things Simple While Learning How To Apply For A Lease
A lot of people want to rush into an equipment lease without even learning how to apply for a lease in the first place. This is perhaps because they are under the gun to get the equipment fast or perhaps because they were denied for a loan everywhere else they applied.
Once you move past the initial information gathering stages to determine the types and brands of equipment you need for your business, its logical to then explore how equipment leasing and financing can help make your business run more efficiently and smoothly – while simultaneously conserving your hard-earned capital.
Instead of traditional cash purchases, leasing your equipment instead might be the best option for your businesses – as there are multiple financial benefits to equipment leasing over making a cash purchase. You can conserve cash, enjoy tax benefits and easily upgrade your equipment at the end of your lease by choosing equipment leasing.
And if your credit is less than perfect, chances are there’s a financing program that’s right for you. All you need to do is apply to find out if you qualify.
Let’s say you’re a restaurant owner and you’ve decided you needed a new commercial deep fryer. If you consider leasing that fryer instead of purchasing it outright, you can save the cash and don’t have to go through a lengthy waiting process – or be bombarded by sales people trying to sell you more than you need.
Get an Instant Quote on Your Equipment Lease, Free
When considering equipment leasing, you can get the equipment you need while best serving your business needs – as well as those of your customers. Equipment leasing – especially with LeaseQ can make this whole process super simple.
Check out this video to see how easy and hassle free equipment leasing is with LeaseQ:
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Signing The Lease Papers
When you apply for an equipment lease, there is a lease contract you’ll need to sign. Make sure you know the terms of the agreement as they are legally binding.
In its simplest terms, equipment leasing is a loan in which a lender buys and owns a specific piece of equipment, then “rents” it to another person or business at a flat monthly fee for a predetermined term.
With an equipment lease, at the end of the lease term, the business has an option to purchase the piece of equipment at its market value. In many cases, it can be purchased for a $1 buyout.
Or the business can continue leasing or return the equipment and start a brand new lease agreement.
So when you choose to lease your equipment, make sure you read all the fine print in the leasing agreement so you understand your leasing obligations and options. If you have questions on your obligations, talk to your leasing agent.
The Top Reason To Lease Equipment: Conserve Cash
When you want to lease new or used equipment for your business, you should really find out if it is for you. When you are first starting up your business, you probably have the fear of running out of working capital. Most businesses worry about this – so you’re not alone in your fears. In fact, this is the one of the top reasons why you should consider equipment leasing.
If you need equipment to get your business up and running, leasing will give you time to make some money with your company and get your fledgling business off the ground.
If you have an established business, you can lease as well. If that old convection oven is giving you headaches every day – affecting customer service and frustrating your kitchen staff, you consider leasing it instead of buying a new one. By leasing it instead, you’ll save your head and save your cash at the same time.
The Second Best Reason to Lease: Tax Reductions
Perhaps best of all, you can write off some or all of your leasing expenses on your taxes. This will make your tax return larger at year’s end as well as reduce your quarterlies. You can then use this money to reinvest it back into new equipment leases, hire more staff or just make payroll.
Best of all, you can fully deduct these lease expenses thanks to a new deduction in the tax code. In 2013, for a non-tax capital lease you can write-off up to $500,000 worth of equipment for the year using the Section 179 deduction. This really helps you keep your cash and reduce your taxable net.
So as you can see, the benefits of equipment leasing are many. So don’t delay to learn more about how to apply for a lease or explore equipment leasing as an option for your business, click here for a free quote.