Could Equipment Leasing Be Beneficial for Your Business?
Most businesses require various types of equipment to function effectively. However, buying equipment outright can be ruinously expensive. As an alternative, many companies opt to lease their equipment instead. Here is some information about equipment leasing and how it might assist you in meeting your business goals.
The Fundamentals of Equipment Leasing
Equipment leasing is a financing option that involves renting a piece of equipment rather than buying it. You can lease includes vehicles, machinery, computers, and other items. You arrange to rent what you need for a predetermined time, and when the lease is up you can renew it, return what you have leased, or purchase the equipment. When you apply online for equipment leasing, approval is usually quick. Lease periods generally range from 3 to 10 years.
Advantages of Equipment Leasing
You can usually lease equipment without expending a large down payment, so your company cash flow remains strong. Because leasing is a different form of financing than a loan, it does not appear on your credit report; this allows you to remain eligible for other forms of funding. The lease payments may also be tax-deductible. As a further benefit, leasing offers you the flexibility of upgrading to newer, more cutting-edge equipment as soon as your lease expires.
Applying for Equipment Leasing
The first step in applying for equipment leasing is to submit an online application. Depending on the value of the equipment you need, you may also need to submit your company’s business plan and financial information. The lessor generally informs you of the result of your application within a day or two. After approval, you should carefully study the terms of the lease, which will include the fixed APR and monthly payments, before signing. You then return the documents to the lessor together with the first payment. The funds for the equipment may be released to you or directly to the manufacturer. Soon afterward, the equipment will be delivered to you.
For more advice on equipment leasing, contact Skogen Capital Lending.