Equipment leasing refers to leasing or renting equipment needed for your business by paying monthly payments to the owner (lessor). When the lease expires, the business may purchase the equipment for its fair market value (or a fixed or predetermined amount), continue leasing, lease new equipment or return it. Lease payments are tax-deductible business expenses and equipment leasing can really help you increase your cash flow and lower upfront investment needed for your business.
What are the some of the benefits of leasing vs. buying?
- Improves Cash Flow
Leasing can really help you as a business owner to improve your cash flow and get equipment at a low monthly installment rather than having to pay higher upfront costs. If you are a start-up business with uncertainty for future, consider leasing vs. buying equipment. Equipment leasing will lower down your business expenses and improve your cash flow.
- Keep Pace With Technology
Equipment Leasing makes it easier to keep pace with technology. This becomes essential if you are into technology business with requirement to upgrade equipment with evolving technology. For e.g. computers, printers, or other computer equipments become practically unusable in 5-7 years time. Would it be worth making an investment? And think about how much it would cost to replace all your equipment once it gets old & unusable. With equipment leasing, as technology dies down, you have an option to upgrade equipment at an insignificant cost depending on leasing terms. Another good reason to consider equipment leasing!!
- Easy Approval Process. More Relaxed Credit Requirement
Leasing immensely helps if you are a start-up business with less or no established credit. While it is difficult to get bank loans, did you know that leases can be approved much faster than bank loans and that leases have more relaxed credit requirements? Both equipment leasing vendors and banks provide equipment lease financing, but for start-up businesses, equipment lease financing can be more easily obtained from a vendor than from a bank.
If you are a start-up business, consider speaking to Bentwood Financial Group. Mr. Trevino, owner of Bentwood Financial Group, has over 28 years of experience in financial arenas of sales, payroll, vendor and inventory management, quality assurance, government regulations and requirements, and disaster recovery.
To schedule a free Consultation for your equipment financing needs, please contact us online or consider speaking to Mr. Daniel Trevino at 800-915-7850.
