Equipment Leasing Considerations
There was a time where if you wanted or needed something, you bought it and you owned it until you made the decision to sell it to someone else. Not anymore. Equipment leasing is the wave of the future for businesses large and small, and the good news is that virtually anything can be leased, especially in cases where companies have multiple employees and need dozens of unique items like computers.
According to the Equipment Leasing Association Of America (ELA), leasing is the method adopted by more than 80 percent of US companies. The result has been an entire industry devoted to equipment leasing that has sprung up to answer the demand.
Leasing makes sense to many, especially when dealing with computers that must be constantly updated. You also have the added benefit of lower monthly payments than what a loan would provide, a fixed rate instead of a floating one, tax advantage benefits, and the ability to retain capital and avoid those downpayments that have a way of sucking the coffers dry. You also have more immediate access to the latest business tools.
Are there drawbacks to leasing? Of course…..you will end up paying more over time, and you are committed to a piece of equipment until the term is up, which can be problematic if your business is one that is constantly in flux.
When shopping for a lease option, consider:
– What type of equipment do you need and how long do you expect to need it?
– Do you want to bundle services together such as training, supplies, and maintenance in the package?
– Have you looked at the long term scenarios in order to make sure that you acquire the adequate equipment?
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– What will the total payment cost be over time?
When considering a leasing source, follow the list to determine the best choice to go with:
– Is there a separate company financing the lease?
– How long has the leasing company been in business? You want someone who has been in business at least as long as the proposed term of your lease.
– Do you fully understand the terms and conditions of your lease?
– Is casualty insurance included that will cover any damage to the equipment?
– Are there options providing for the upgrading of equipment before the lease period is up?
The Benefits Of Equipment Leasing
Almost every leasing scenario is unique, and as a result it is important to carefully study the terms of the agreement. Compare the numbers of financing versus leasing and you will rapidly see which one is the more profitable route for your company’s needs.
LeaseQ is one of the leading providers of commercial equipment financing and leasing in the United States, with options available for both small business startups and large scale corporations.