Leasing is a very important strategy that every business owner should employ to stay ahead of the competition.
According to battle of war, the winning factor in every war is “the design of the battle plan”. In other words, if an army can effectively utilize every resource at their disposal to counter the enemy, then the war is already won.
We can now apply this simple trick in business to see how equipment leasing can actually help us to stay ahead of competition. In business, if you can access the right resources that you completely know how to utilize, chances are; you’re more than apt to succeed. And apparently, small scale business owners are coming to term with the fact that leasing commercial equipment can actually help them to have a competitive advantage in their field of specialization.
How Leasing Can Help You Stay Ahead Of The Competition
1. You Can Still Compete Despite Having Limited Funds
Leasing equipment can help you compete effectively in any market even if your start-up capital is limited. And by that I mean, it can actually supplement any financial support you get from trade credit, equity capital, bank debt, mortgage financing or any other form of financing. Actually, many small business managers have discovered that if they can access various forms of financial options, they’ll always stay ahead of their competitors, who have limited financial options and can’t therefore afford state-of-the-art business assets.
2. Leasing Can Allow You To Keep Up With Technological Advancement
If leasing equipment can enable you to access up-to-date equipment and software that are very expensive, why can’t you use it to your advantage? Well, for one, leasing guarantees your access to some of the most sophisticated equipment at minimal cost. And if you consider yourself smart enough, use operative leases to get yourself any equipment for a fixed duration. Why?
Simple; operative leases generally come with short lease periods. As a result, it allows you to upgrade the equipment you have more frequently; instead of being stuck with out-dated equipment as you await your contract to expire to update.
3. Leasing Can Actually Help You Stretch Your Equity Capital
Equity capital is apparently the most flexible form of funding, as opposed to commercial equipment funding which is more of a dedicated form of funding. To make it simple, equity capital allows you to use the funding for a number of other purposes–like marketing, business development, adding key personnel and conducting business research.
Dedicated financing, on the other hand, can only be used to acquire equipment. With that in mind, you can free up your equity capital for other purposes, and then use equipment leasing to acquire any equipment your business needs to operate and run smoothly.
4. Using Equipment Leasing To Equip Team Members
Needless to say, your team members need the best equipment to function effectively in a competitive market. By ensuring that all your team members have direct access to the latest hardware, software or any other equipment they need to be productive, then you’ll always be ahead of your competitors.
5. Leasing Can Accelerate The Rate At Which Your Company Is Growing
To stay ahead of competition, you can use equipment leasing to accelerate the rate at which your company is growing. As a matter of facts, waiting until you have enough cash to acquire the necessary equipment will only reduce your effort to expand your business. You can save yourself time and the slow growth, as well, by using what you have to acquire what you need, and save yourself time. In so doing, you’ll be having a competitive advantage over other companies that only depend on the cash they have to acquire business assets.
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6. Leasing Allows You To Maximize Your Tax Benefits
If you’re smart enough in structuring your lease contract, you can use it to take advantage of tax benefits. Actually, once you secure an operational equipment lease, you’ll be allowed to deduct lease payments. This will in turn yield tax benefits that significantly reduce the cost of acquiring business equipment. Having said that, you can easily use equipment leasing to stay on the competitive edge or to counter all your rivals who are yet to discover how the trick works.
7. Leasing Can Help You Manage Your Working Capital
Unlike other business owners who solely depend on their working capital to acquire business assets, you can lessen the pressure on your working capital by leasing all the necessary equipment. Through leasing, you’ll significantly reduce your working capital outlay to stay ahead of companies that have yet to master this simple technique.
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