An equipment finance lease is a commercial equipment acquisition method that tends to save business owners a lot of money in the long term. Equipment leasing is fast becoming the preferred method of equipment acquisition by many different business owners for the way it keeps their business safe and secure over time.
Many different types of businesses can potentially benefit from leasing their equipment items instead of obtaining them outright through cash purchases, and some of the primary business niches utilizing this acquisition method include the restaurant industry for restaurant equipment, the gym and fitness industry for fitness equipment and the medical and dental industries as well.
These are only some of the applicable business niches where leasing can be advantageous; there are many other ones that are a bit more obscure. We look at both types here.
What Is An Equipment Finance Lease?
Depending on the individual needs of a given business, leasing is an acquisition solution that allows for equipment items to be paid for over extended periods of time, as opposed to paying for them all at once through the method of cash purchasing.
The main reason that cash purchasing is a less than ideal way of getting all of the equipment your business needs to function properly is that it tends to rapidly deplete the kinds of capital reserves which many businesses depend on in times on financial struggle. When capital reserves are compromised, this can put a business in serious financial jeopardy.
What Kinds of Equipment Can Be Leased?
From deep fryers to dumbbells, from char broilers to X-ray machines, there is a wide range of equipment items which can be leased in today’s market. Whether you own a gym, or a restaurant business, leasing your essential equipment items is the best way to fully equip your business, while also saving money and keeping your business financially safe and secure.
Even though some business owners still believe that cash purchasing might be the better way to go, for virtually all volumes of equipment requirements it makes much more sense to lease your equipment instead of buying it outright. Only in rare cases when an extremely small volume of equipment is needed is cash purchasing a potentially advantageous approach.
Even in these rare cases, leasing can actually still be the better option, especially if the lessees know in advance that they will want to keep the equipment items permanently. In this case, a one dollar buyout lease is probably the best possible acquisition option on the table.
Financing Options for Equipment Lease Agreements
When preparing to consider finance options for your equipment leasing agreement, one of the first things to determine is whether or not your business is going to need loans in order to insure that lease payments are made consistently and on time.
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Regardless of a leasing client’s loan status, the decision to lease their equipment items instead of cash purchasing them is virtually certain to make business expenses much more manageable both in the short and long term.
To see if you qualify for an equipment finance lease as well as help to answer the question what is an equipment finance lease, click here for a free quote.