Are you looking to expand your business and grow in new directions but are feeling strapped for cash? In order to grow and succeed as a business, you need to take risks and jump at new opportunities as they present themselves. However, if you’re a small business or startup, it can oftentimes be difficult to find the resources necessary to take advantage of new opportunities. One thing that every business needs is the proper equipment and tools to function in their respective industry. All of the ingenious and inventive ideas in the world will never make up for a lack of proper equipment required to carry those ideas to fruition. This is where equipment leasing comes in.
Equipment leasing is essentially a loan where the lender has legal title to equipment and loans it to a business or individual at a monthly rate for a certain number of months. After the expiration of this period, the business can exercise the option to purchase the equipment at fair market value, renew their lease on the equipment if they’re not ready to make investment, or return the equipment.
Equipment leasing is an excellent way to gain access to required equipment without paying cash deposits up front. This is great if you are a smaller and newer company with limited capital or if the equipment you need will have to be upgraded at regular intervals. If you lease your equipment, you’ll have the option of upgrading to newer models at the expiration of your lease term and won’t be stuck with outdated models. This is especially important if your business involves the use of advanced technology in a changing field.
If you’re looking for new equipment and don’t want to pay a deposit up front, leasing can offer substantial benefits and flexibility to your business structure. It’s estimated that 80% of all businesses lease at least some of their equipment. This goes to show how common and useful equipment leasing is. Unless you’re a larger company with static equipment needs, you are sure to realize some benefit by choosing a lease over ownership.