Office Equipment Leasing
Office equipment leasing is much better than buying because you can stop using the equipment when a new model comes out.
Office Equipment Leasing
Finding cheap equipment financing can be hard, but not when you know where to look. To run your business, you will need different types of equipment. For example, you need various vehicles, computers, printers, copiers and more, and they can all cost a good amount of money. However, equipment-financing loans can come in to save the day for many small businesses.
Buying vs. leasing
These days, most business people prefer to lease equipment rather than to buy it. This applies especially to vehicles and other heavy equipment. Why buy a piece of equipment that will depreciate with time, losing value, when you can lease it and have another person worry about the loss of value?
When you buy your equipment, you can get up to 100% funding. However, most business people ask whether they will be eligible for tax deductions for depreciation if they lease equipment.
You can deduct an asset, whether you have bought it or leased it as long as it is deductible. However, you may not do that all at once. This saves you a good amount of money.
Who is equipment leasing for?
Coming back to the topic of leasing office equipment for your business, you will find it easier to buy a piece of equipment on loan. For example, there may be a printing unit that costs $48,000. If you lease it at a rate of $14,000 per year for 4 years, when the lease is up, you may have the option of buying it at $3000.
However, sometimes you do not want to buy a certain piece of equipment if you will be left with an obsolete piece of equipment after you make the last loan payment.
Leasing is an option for small as well as big businesses. When it comes to equipment, many small businesses just prefer to lease. With the fast pace of technological advancement, what is top level today could be rendered obsolete tomorrow.
When you buy, the equipment is the collateral, meaning that even if your business has not been in operation for a long time, you still have a very good chance of getting the loan. If you have bad credit, you will still probably get the financing for buying needed equipment. By the time you make the last payment, you will be the owner of the equipment.
Can you get a loan to finance your equipment lease?
Well, you cannot exactly call it that, but since there are so many types of business loans, you can borrow money and use it to finance your lease. For example, when you take out a loan to plug a gap in the cash flow between the high and low season (if you run a seasonal business), you can use some of the money to pay for monthly equipment lease.
Before you lease equipment, you need to ensure that the business has a cash flow record. No equipment leasing company will advance you the equipment that you need if you cannot demonstrate the ability to pay. Of course, leasing is easier since the equipment is the collateral, but you still need to demonstrate that you can make the monthly payments.
Your business must have been running for at least a year. If your credit rating is good, that helps in lowering the monthly lease.
It can be hard to get an outright loan to finance leased equipment, but that does not mean you have to miss out because there are other types of loans available.
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