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9 Benefits of Financing Business Equipment

Does your business need equipment to run effectively and efficiently? You might want to consider business equipment financing rather than purchasing your equipment outright, and reap the benefits of going this route.

9 Benefits of Business Equipment Financing

If your business requires equipment to run, then it’s important to make sure you have quality equipment. But the reality is that the equipment that you need might be expensive. When it comes to getting this equipment, you can pay for it in cash.

The other option that you have, however, is financing your equipment. For many business owners, this might be a preferable option over purchasing the equipment your operations need outright. There are several reasons why this might be the case.

Here are a few benefits you can expect from financing your business equipment rather than buying it:

1. Budgeting Will Be Easier

No matter what your business is or what it needs, purchasing the equipment necessary can blow a pretty big hole in your budget. A lot of the equipment that you and your business need is likely to be expensive, and that’s money you could be putting toward other operations.

When you finance your equipment, it’ll be much easier to manage your budget. Instead of having to put down more money than you may feel comfortable with right off the bat, you’ll be able to make smaller, incremental payments. This, in turn, is going to allow you to put more money toward other important elements of your business.

2. You Can Establish and Build Commercial Credit

If you want your business to last and stay sustainable in the long term, then building up good credit is important. Even if you have the cash available to buy the equipment you need, you may still want to consider financing.

That’s because financing allows you to build up your commercial credit. This credit will be important if your business ever takes a cash flow hit, which is almost inevitable for most businesses!

3. Interest Rates Are Low

Many people avoid financing options when purchasing something because they’ll have to pay interest on top of the regular monthly payments. There are certainly some cases where interest rates can get very high, making it less worthwhile to finance than it would be to pay in cash.

One of the best things about financing business equipment is that interest rates have stayed historically low. Over time, interest rates are bound to increase. But when it comes to this type of financing, interest rates have stayed comparatively low. This makes it an even more cost-effective option than buying the equipment outright would be.

4. Getting Financing Is Fast

When you’re financing many purchases, you often need to wait a long time for everything to get sorted out. Sometimes, depending on the purchase, it can take a while to collect all the documents you need to apply for financing, and the entire process can take weeks.

In most cases, getting financing for your business equipment is going to be very fast. The application process might take just a few hours, and you’ll be able to get the financing you need for all your equipment quickly too, making it a great option for those short on time.

5. Collateral Won’t Be Necessary

When it comes to financing things like a car or a house, you might be expected to put up collateral that you already own. This is a way for lenders to ensure that you will pay them what you owe them.

But you don’t have to worry about collateral when you finance your business equipment. Most of the time, it will not be necessary to put up any collateral. This makes it a great option because it lowers the risk on your side and makes getting financing much easier.

6. You Can Increase Your Business’s Future Sales

You might have some equipment that your business needs already. If you have the equipment you need, you may think that it’s not necessary to look into equipment financing for more pieces. But getting financing can help you invest further in your business.

Financing allows you to get more pieces of equipment that could help your business grow. When you choose to finance more equipment, you’ll be able to keep your business’s operations high. If you’re a manufacturer, for example, financing more equipment can help you increase the number of products you’re able to manufacture which allows you to sell more and receive more funds.

7. You Might Get Tax Incentives

Having to deal with taxes is one of the least pleasant parts of any business. But when you’re smart about the way your business spends money, you can make facing tax season an easier and smoother process overall.

Financing your equipment might come with tax benefits. In many cases, the terms of your financing might indicate that you can write off the interest that you’re paying on top of your monthly payments as tax-deductible. This could be a huge benefit to your business.

8. You Can Get the Most Up-to-Date Equipment

If you’re paying for the equipment that your business needs in cash, then you might need to look into purchasing older equipment for the purchase to stay cost-effective. Unfortunately, older equipment may not work as well as newer equipment, and there may be some upgrades and improvements you’re missing out on when you go this route.

If you decide to finance your equipment instead, you’ll be able to get the newest and latest equipment and technology. This will help your business work and operate to the best of its abilities.

9. Save Money for Other Purchases

Even if you have the funds available to purchase the equipment that you need in cash, it’s not always a good idea. Because spending this much money will eat up a huge chunk of your budget, it can affect your ability to make other purchases that are necessary for your business.

For example, you may run into a situation where you need to spend money on repairs for something. But if you spent all that money on paying for your equipment in cash, it won’t be available for any emergencies. Financing will help you build up your savings and maintain a little more wiggle room.

Who Qualifies for Financing?

If you’re considering getting financing for the equipment you need for your business, you’re probably wondering if you qualify for financing. Most leasing companies will be more than happy to work with established businesses, which means businesses that have existed for at least 2 years.

But even if you’re a new business, you may still be able to get financing for your business equipment. You might just require a personal guarantee that shows the leasing company that you’ll be able to make the payments on time.

How Do You Get Financing?

If financing your equipment sounds like the right path for you and your business and you think you might qualify, then the next step is to apply for financing. As we said before, the application process is extremely fast and easy.

All you’ll need to do is choose what pieces of equipment you need from the supplier you choose, and then describe to the leasing company what you’re looking for and how it will be used. The company will do a credit check. Once the application is approved and the lease is signed, the equipment you ordered will be delivered to you and your lease will begin properly.

What Businesses Benefit Most from Financing?

Almost every business can benefit from financing equipment rather than buying it outright. Because there are so many financial and strategic business benefits to financing, it’s a fantastic option for both large and small businesses.

If you are already an established business, then leasing your equipment can help you maintain your business’s finances and increase your profits. If your business is still growing, then financing can provide you with a super-effective way of building up your business.

What Happens When the Lease Is Done?

There are a few different options available to you once your lease is over. Once it ends, you’re able to return the equipment with no other obligation. You can also re-lease the equipment if you enjoyed using it and want to continue having it. If you do this, you may be able to re-negotiate your monthly payments.

Another possible option available to you is to trade in your equipment for newer equipment if you’d like to upgrade. Finally, you can also buy out the equipment if you don’t want to finance it anymore, but you do want to keep it.

Financing your business equipment is a great option for both new and established businesses. There are plenty of benefits that come with financing, so it’s something you’re going to want to consider for your business. When you’re ready to learn more, make sure you get in touch with Noreast Capital to learn more about how we can help you with business equipment financing.

Is It Difficult for a Small Business to Get an Equipment Lease?

When starting or expanding your business, you will need equipment such as furniture, electronic devices, and software. You can either choose to buy them outright or to borrow them using a lease or loan. The latter option is often preferable, especially for small businesses that might not have the resources to buy all the top-notch tools they need. An equipment lease allows you to conserve your capital while remaining flexible at the same time.

But how hard is it for a small business to receive such a lease? Will it be prohibitively expensive? The answer is that several factors affect your eligibility, and they include the age of your business, your financial stability, and the size of the lease you are asking for. Today, we will have a closer look at how we evaluate businesses and what you can do to increase your chances of a positive outcome.

How Hard Is Getting an Equipment Lease? 

It’s not always easy for a small business to get started. If you have a physical location, you will need to pay for staff, rent, furniture, and professional equipment. Having to pay for everything upfront might make it almost impossible for you to open a new branch. However, this isn’t usually the case. Lenders such as Noreast Capital allow you to lease your equipment so you can spread out the cost and allow your business to grow before you pay.

When considering you for a lease, we will take several factors into consideration. Depending on your company’s age and the profit you are making, we might offer you a lease line of credit. When you’re ready to borrow your first piece of equipment, you won’t have to apply again, and we will simply be able to provide it. Your personal account manager can let you know how much you may be able to borrow.

The Age of Your Business 

A crucial factor is how long you have been in operation. Most lenders prefer companies that have been running for at least two years because they have had time to become established and make a profit. Such businesses have records of their sales and expenses, which allows creditors to see whether they are making a profit and how much they will be able to pay.

However, just because you’re a new business doesn’t mean you won’t be eligible. There is a chance that you can borrow from us even if you are just getting started. To make a decision, we will look at the financial background of the owners. You will almost certainly have to back your lease with a personal guarantee in such a case, and we might ask you for additional documentation like your business plan or your supplier contracts.

The Financial Health of Your Business 

Every high-quality lender will do their due diligence before issuing a small business with a lease. When you apply to Noreast Capital, we will require you to provide certain financial documents. They include bank statements, trade references, or financial statements. To make the process easier, you should have all your paperwork in place before you contact us.

Once you have provided us with the necessary documentation, the equipment lease application process is surprisingly straightforward. Depending on the size of your lease, you might receive an answer within a few hours or a few business days. You can then select the tools that best fit your needs and either pick them up or have them delivered to your location.

The Size of the Lease 

Before providing you with a lease, we will check that you are able to handle the amount you applied for. Smaller and newer businesses should get started with a minimal amount so that they don’t run into problems later on. As your company grows, you can then increase the size of your debt to help you expand faster.

In general, amounts under $50,000 are reasonably easy to receive. If you are an established firm, you won’t even have to provide us with financial statements, and the application is a simple one-page form. Any amount over this threshold will be checked more closely since your monthly payments could be substantial.

Ways to Ensure Eligibility 

As you can see, getting a lease for your business isn’t extremely difficult, but lenders do check that you have a sound financial background. The process is easiest for businesses that are over two years old and are able to demonstrate solid and steady performance. If you don’t fall into this group, there are several ways you can ensure eligibility.

For example, you can back your lease with a personal guarantee, which means that you will be liable if your business can’t pay. Alternatively, a guarantor with a stable background could help. Your account manager might ask you to provide documentation such as your business plan, resumes from the company’s founders, and pro forma financial statements, which can prove that you are experienced in your field and on track to make a profit.

Why Leasing Could Be a Great Strategy for You 

Getting a office equipment lease is possible for most businesses, but it will take some time and effort. Is it worth the hassle? In most cases, the answer is yes. Not only can you conserve your precious capital, but you can also remain flexible and adapt to changing market conditions more quickly. The type of lease you get can be tailored to your company’s needs, and you can choose from a wide variety of equipment, no matter what industry you operate in.

Conserve Your Capital 

Arguably the most important reason why you should lease your tools is that this allows you to conserve your money. If you are a new business, you might not have the option to buy everything you need, so leasing is the way for you to start out with high-quality equipment. For more established businesses, it is a way to grow faster and reinvest your capital to expand the company.

When opening a new branch, you might have to pay for additional employees as well as rent. This can be enough of a financial burden, and leasing the furniture and equipment can take some of the pressure off. That way, you might be able to expand faster and therefore make more of a profit in the long run.

Retain Flexibility

Another key benefit of an equipment lease is that you don’t have to lock yourself into an expensive deal. Our terms are often between 12 and 36 months, and at the end of the lease, you can choose to keep the tool, give it back, or take out another lease. If your needs have changed or the market is different, you can simply choose something else.

This is particularly important when it comes to equipment that is time-sensitive, such as electronic tools and software. These items need to be updated frequently, but they can also be extremely expensive. By getting a lease, you can stay on top of current trends and upgrade much more frequently, since you didn’t spend all the money upfront.

Choose a Plan that Suits You 

Every company is different, which is why we at Noreast Capital offer such a wide range of leases to suit various needs. If you already know that you would like to buy the equipment at the end, you can go for a capital lease, which allows you to purchase the objects at a minimal price, such as $1, once your lease is up. If not, you can opt for a contract that offers you multiple possibilities at the end, such as giving back your equipment or upgrading.

Brand-new business might benefit from a special contract that doesn’t require payment for the first few months. You will be able to build up a clientele before having to worry about paying for your equipment. Similarly, seasonal businesses can pay less during the quiet months and more when they are busiest to prevent cashflow problems.

Choose from a Wide Variety of Products 

In terms of the equipment you can lease, there is an enormous variety available. In addition to furniture, you can also choose from a wide range of industry-specific tools and electronic gadgets. In fact, we even offer software for accounting, client interaction, graphic design, and more. No matter what you need, you should speak to our customer service team, who can present you with all the options.

Getting an equipment lease or Fair Market Value or FMV leasing can be a challenge for small businesses, but it is not impossible. As long as you have a good financial history, have been in business for a few years, or are willing to personally guarantee the lease, you should be able to borrow all the equipment you need. The best way to find out more is to get in touch with a lending company and explain your situation.

You will be allocated an account manager, who can take you through the application process and help you increase your chances of getting a great deal. They might speak to you about the kinds of financial documents you need to provide and how much equipment you can expect to borrow. Call us today at Noreast Capital to find out more and open your lease line of credit.

How Do I Lease Equipment for My Business?

Business equipment leasing is growing at a rapid rate, as more and more firms are realizing that they don’t have to spend their cash upfront on the tools they need. If you’ve never borrowed equipment before, you might be wondering how you can gain access to business leasing and whether this is a complicated process. Fortunately, it is quite straightforward, and most companies are eligible.

Once you know what items you want and have compiled all the financial documents you might have to provide, you simply have to contact a lender. They can help you get what you need within a few days, and you’ll have your own account manager who can assist you throughout the process. Let’s have a closer look at how equipment leasing works and whether it’s the best option for your firm.

How to Access Business Leasing

The equipment leasing industry has expanded rapidly in recent years, as more and more businesses are making use of the benefits of spreading out the cost of their purchase. Great deals are easiest to access through a comprehensive lender who works with many companies offering business tools. That way, you can get everything you need from the same place and benefit from better rates as a result.

To get started, you need to work out what you actually need, then have a look at your financial situation to find out how easy it will be for you to access a lease. There are several things you can do to increase your creditworthiness. Once you have an idea of where you stand, you can get in touch with a lender like Noreast Capital, who will pair you with a dedicated account manager. This professional will help you access financing within a few business days.

Take Stock of What You Need

The first thing you must do is decide what items you’d like to lease. While some businesses decide to purchase some tools upfront, others borrow everything they need to get started. This latter option could be useful if you don’t yet know how your company will develop over the next few years and you want to remain flexible.

Keep in mind that you can borrow a wide range of equipment, and this goes beyond physical items such as desks, chairs, electronic devices, and an HVAC system. In fact, we also offer various types of software you might need for designing, accounting, and interacting with your customers. Before making a final decision, browse your lender’s website to see what’s on offer, or get in touch with them and ask.

Figure Out Your Financial Situation

Most businesses are eligible for leasing. However, there is an application process, during which your credit will be checked. Lenders generally prefer working with companies that have been in operation for at least two years and have a good credit rating. We might also accept newer businesses or startups, but the founders will need to have a high credit score.

You can increase your chances of getting a good deal by offering a personal guarantee, which means that you will be responsible for paying if the business fails to do so. What’s more, you can offer us business plans and financial statements. Such documents can demonstrate that your company is viable and making a profit. If you’re hoping to borrow equipment that is very costly or you’re a new business, this might be a requirement.

Get in Touch with a Lender

After figuring out what you need and compiling your financial documents, you can get in touch with your lender and start the application process. In many cases, this will be very simple, so it’ll take you only a few minutes. If you are looking to borrow less than $50,000, you should receive an answer from us within one hour of sending in your application.

Businesses that need to borrow more expensive items might have to wait for one to two business days before receiving an answer. If you’d like to ensure access to a lease, you can open a lease line of credit ahead of time. With this option, you’ll have financing in place whenever you are ready to start using the equipment.

Why Lease Your Equipment?

As you can see, getting business leasing isn’t very complicated, and it can be set up very quickly, as long as you are well-prepared and in a good financial position. But is it the best option for your business? Why do so many companies choose to lease when it is generally more expensive than buying products outright? There are many reasons why you might choose this option.

Most commonly, companies want to keep their capital and reinvest it into expanding their business more quickly, instead. However, you might also benefit from a lease if you’re a new firm and don’t yet have access to large amounts of money. Borrowing equipment can help keep your business more flexible, so you can change directions or benefit from innovations more quickly.

Keep Your Capital

The primary reason most businesses opt for leasing is that it allows them to keep their money. Many of the companies we work with have very solid business plans, and they can use their capital to expand their operations and make a profit. In this way, leasing can lead to higher revenue, and the small additional cost is well worth it.

Similarly, small startups might not yet have the money needed to purchase everything they require. They can opt for either a loan or a lease. The latter is more flexible and can provide them with better value. Over time, they will build up more capital, and they can then choose to either upgrade the lease or pay off the items and keep them.

Remain Flexible

An additional benefit of leasing is that your firm retains much more flexibility. When you buy a large device or machine outright, you might have to use it for 5-10 years to make the purchase worth the cost. By that time, the piece of equipment might be outdated, or your business may have gone in a new direction.

Our lease terms usually run between 12 and 60 months, and you have control over what happens in the end. If you are still happy with the equipment, you can buy it off us, but if you’d like to upgrade or choose something different, you can give it back and sign a new lease. That way, you can more easily adapt your operations to changing market conditions.

A Lease for Every Business

At Noreast Capital, we understand that every business is different, and we want to help you achieve your goals more efficiently. For this reason, we offer a variety of leases which can suit various companies. Because leasing is so flexible, you will never have to worry about being left behind or not being able to afford the newest technology. Your dedicated account manager can help you find the terms and duration that best suits you.

Keeping Your Options Open

When you first speak to us, we will discuss what your goals are and why you are taking out a lease. There are certain contracts that specify what happens at the end. For example, a capital lease transfers ownership of the item to you for a token sum once your lease term is up.

However, there are other options that have a more open end, which means you can delay making a decision until the end of your lease. That way, you can test out the item and see whether it’s a good fit. If so, you might want to buy it from us. Alternatively, you could give it back and upgrade, or you could return it and end your lease.

Special Requirements

Some businesses have special requirements, and we can cater to that. For instance, very new companies or firms that are setting up a second office might not immediately see a return on their investment. We can help you by delaying your payments for a few months, so you can focus on gaining customers and getting set up.

Other companies, such as accounting firms, have a seasonal business model. We can tailor your lease to these fluctuations in income, and you will pay us more during your busy season and less during the quiet times. Your account manager can speak to you about these options.

If you need equipment but don’t want to spend a large amount of cash, business leasing could be the perfect way forward. You simply figure out what you need, gather all the documents to prove you are a responsible borrower, and then speak to a lender who provides the items you need. The process is usually quick, and you may get your lease in place within a few business days.

There are many benefits to leasing your tools, the main one being that you keep your capital and can use it to invest in your business. This will allow you to grow much faster and at a lower cost. What’s more, you’ll be more flexible, and you can access updated or innovative products that would otherwise be out of reach. Contact us today at Noreast Capital to find out whether you qualify for a business equipment lease.

How Long Can You Finance Heavy Equipment?

Businesses that require large machines often have high overhead costs. To get started or to expand such a company, heavy equipment financing is needed, as the cost of these items is often prohibitive. Luckily, there are leases and loans available to suit every lender, and they can be of various lengths. That way, businesses retain their flexibility and capital while gaining access to the best machinery available.

How Long Does Heavy Equipment Financing Last?

Normally, the people who lease equipment from us will opt for a term between 12 and 36 months. However, heavy equipment can be borrowed for much longer, since it usually lasts for many years. The length of your lease will depend on several factors, such as the useful lifespan of the type of equipment you need and whether you are opting for a new or used machine.

What’s more, we can tailor your lease to your specific needs, so it can be shorter if you don’t know exactly what you will want to do in several years’ time. That way, you can choose to end your lease and move on to different projects, extend it and keep using the piece of equipment, buy the item up front, or even upgrade to a newer version and take out a new lease.

Types of Heavy Equipment

Almost all types of heavy equipment can be leased, and we work with a wide variety of brands, so you should find exactly what you need from us. If your business is agricultural, you might have to borrow a tractor or machinery for specific harvesting processes. Many businesses in the construction industry need cranes, tunnel boring machines, and various types of saws.

Other equipment required for various businesses might be street sweepers, dump trucks, backhoes, and pile drivers. No matter what your requirements are, you should get in touch with us at Noreast Capital and speak to your dedicated account manager. We can figure out how to access the equipment at the best price possible.

Considerations

Together, you and our specialist will decide what the best loan term is. If you expect to use the piece of equipment for the foreseeable future, you might opt for a new machine and a long lease term. However, if you aren’t sure yet or you only require it for a specific project, you could go for a much shorter time frame and return the item to us as soon as you no longer need it.

In such a case, you might consider choosing a second-hand machine, as this could be cheaper and more flexible. As your needs change, you can always come back to us and ask us for an upgrade and a new lease. Because you won’t be locked in for a very long time, you’ll have the flexibility you need to change your strategy and expand or update your business.

What Type of Financing Is for You?

The most common type of heavy equipment financing we offer is a lease, but you could also opt for a loan if this better suits your needs. The two ways of borrowing are quite similar, but ownership of the piece of equipment is handled slightly differently. When you lease, we remain the owners, and you are more flexible at the end. On the other hand, a loan allows you to buy the item off us with a small down payment upfront.

Leasing

Leasing allows you to use the piece of equipment you need without actually purchasing it from us. For the duration of your lease, we will own the item, but you get to use it by paying us a monthly fee. There are different types of arrangements, which makes this agreement extremely versatile. For example, you can choose a long lease and start using your machine without paying any money upfront.

At the end of your term, you can buy the equipment from us for $1. Alternatively, you could choose a much shorter lease, maybe two or three years, and either purchase the item at fair market value or give it back at the end. This second arrangement can be great for businesses that are just starting out or that are facing uncertain market conditions, since they retain all the flexibility.

A Loan

When you opt for a loan, you are buying the piece of equipment you need from us on finance. This means that you will have to provide us with a down payment, which might be around 15% of the total value of the item you’re purchasing. Then, you will repay us the remainder in monthly installments over several years. Because heavy equipment is expensive, it might take you 6-10 years to fully pay off the item.

In general, the interest rates can be lower for loans than for leases, so you could pay less in total if you choose this option. However, you will have to put down a deposit, which can be a lot of money if the equipment you need is very expensive. What’s more, you have less flexibility than with a lease because you don’t have the option of returning the equipment or upgrading at the end of your loan term.

Your Application Process

Now you know what you can lease and how the various arrangements differ, you might wonder how challenging the application process is. Fortunately, you can receive an answer in a very short time. Simply submit our application form, and your dedicated account manager will get back to you with some options. If you’re looking for under $50,000 in credit, you’ll receive an answer within a few hours.

For businesses that need more than this amount, the process might take one or two business days, as you’ll need to submit additional financial statements. To avoid this wait time and make sure you’ll be able to get the financing you need, you could open a lease line of credit ahead of time. This means that you’ll have the credit your business requires whenever you’re ready to start acquiring equipment.

What Are the Benefits of Borrowing Your Heavy Equipment?

When it comes to setting up your business or expanding your current operations, there is a lot to consider. You’ll need some office space, a number of specialized employees, and all the equipment required for the work. Because the first two points can be expensive, it’s often easiest to finance the last one and conserve some of your capital.

Nowadays, there are so many different options available to borrowers that you’re sure to find the exact lease to suit your needs. This gives you and your business more flexibility, so you can quickly respond to different market conditions and upgrade your equipment when needed.

Conserving Your Capital

The most important reason why most companies lease or finance heavy equipment is that they can conserve their money that way. Many startups don’t necessarily have enough funds to purchase everything they need, so borrowing is the only option open to them. A flexible lease is the best way forward because there is no hefty down payment required.

Similarly, businesses that are expanding already have a number of costs to deal with, so not having to purchase all their equipment upfront can be a relief. Heavy equipment financing allows such firms to deploy their resources more efficiently. For example, they can invest the money saved back into the business and generate more revenue.

A Lease Tailored to Your Situation

Every business has different requirements, which is why there are so many types of arrangements available. If you’re just getting started and don’t have a lot of revenue yet, we can delay your payments for the first few months, which allows you to use all your resources on building up a clientele. Similarly, businesses that operate seasonally could benefit from higher payments during the ‘on’ months and lower payments during the ‘off’ months.

At Noreast Capital, we offer numerous such arrangements, which can facilitate the running of your firm and help you stay on top of your running costs. You can speak to your account manager about the specific requirements of your company and the fee structure that works best for you.

More Flexibility

Heavy equipment is expensive and usually very big, and it is a long-term investment. If you buy your machines upfront, you will have to keep them for at least ten years to justify the cost, and you’ll also need a permanent place to store them. However, a lease can be shorter than this, so you could use your equipment only for the projects that require it and then return it to us once the work is completed.

This is especially useful for businesses with a somewhat open future. Maybe you’re not sure yet whether you’ll want to expand, or you are currently exploring a new niche. In such a situation, leasing can be the perfect way to keep your options open.

Heavy equipment financing brings many benefits for business owners, who can keep their capital and invest it back in the business, remain versatile and adapt to market conditions, and structure payments in a way that suits them. Call us today at Noreast Capital to find out more and get started with us. You could have your lease or loan in place within one to two business days.


How Can I Affordably Lease Equipment as a Small Business?

With a market size of $178bn, the US leasing industry is enormous. Millions of small and large companies lease their equipment every year, thus benefitting from lower upfront operating costs and access to better equipment and increased security. Whether you’re an established small business in your community or you’re just starting out, business equipment leasing…

Continue Reading How Can I Affordably Lease Equipment as a Small Business?

Can You Lease Office Equipment?

Setting up or expanding an office-based business can be extremely costly, because you have to pay for all your equipment on top of the rent and general moving costs. For this reason, a great number of companies use office equipment leasing to finance the purchase of new items. This process is available for almost everything you need, from furniture to electronic devices to software.

Leasing can be a great option for many small or medium-sized businesses. If you’re starting from scratch, you can minimize your initial costs and the amount of debt you accrue from the start. Slightly larger companies that want to expand can do so at a small upfront cost by leasing the additional equipment. There are many different types of contracts available, so you’re sure to find something that suits your individual needs.

What Equipment Can You Lease for Your Office?

When you think of an equipment lease, you might imagine office furniture or maybe specialized electronic devices. However, you can purchase almost everything you need in this way, including virtual components like software. As a result, you only have to spend money on your space and your employees when setting up your business, and you can pay for the rest over time or when your investment has started to become profitable.

While you can go to the firms that sell the equipment you need, speaking to a direct lender like Noreast Capital could have many benefits. By working with us, you can get all your items from the same place, and you don’t have to spend time filling out a large number of applications. Because you’ll have a dedicated professional assigned to your account, there will be continuity, and we can personalize your service as we get to know your needs.

Furniture

Office furniture can be expensive, especially when you need to buy large quantities of it all at once. In addition to desks and chairs, you might need items for a media room, a setup where your employees can relax during their breaks, and pieces of furniture that allow you to hold large meetings. What’s more, your business might have specific needs depending on the shape of your space and the type of work you do.

At Noreast Capital, we can offer you a lot of choices when it comes to furnishing your office. You can lease exactly the type of product you need from us without paying for it all upfront. Once you’ve made your choice, we can discuss what kind of office equipment leasing is best and whether you will start to pay it off right away or delay payments until your business is profitable.

Electronic Devices

Although you might need furniture in large quantities, each piece will be relatively cheap. In contrast, electronic devices such as high-quality photocopiers, scanners, computers, or telephones can be extraordinarily expensive. When setting up your office, you’ll need to make sure you get up-to-date devices, which further increases the cost of your equipment.

By choosing a lease, you can spread out the cost over several years. Our most popular lease term is 36 months because it gives your business plenty of time to increase its revenue and make the investment worth it. Your employees will benefit from the high level of productivity that modern electronic devices allow, so you’ll be improving your bottom line without the initial cash outlay that would be necessary otherwise.

Software

Many of the business owners we work with are surprised that we also offer software leasing. If you need software for accounting, advertising, graphic design, business management, scheduling, or inventory and supply chain management, we can help you out. Like electronic devices, purchasing these products upfront can be very costly, so you can benefit from delaying the price.

What’s more, you might be able to upgrade more regularly because you can decide to sign a new lease once your term is up. If you go for the average 3-year term, this means that you’ll always stay on top of the newest technology.

Who Can Benefit from Office Equipment Leasing?

You might wonder if equipment leasing is the right choice for your firm. Isn’t it more expensive than purchasing everything outright? The answer is that it depends on your business and the type of lease you choose. Because the purchase is delayed, you keep your cash for longer and can therefore reinvest it in your operations. If your company is profitable, this can lead to much higher revenue, so the slight extra cost of your lease is more than worth it.

What’s more, most small and mid-sized businesses don’t have an excess of capital to spend on office equipment. Thus, they would have to borrow money from a lender, such as a bank, if they wanted to purchase the items upfront. The interest rates of these kinds of loans can be higher than your lease, so it doesn’t make any sense to choose this option.

Startups

Many of the companies we work with are startups, so they are in the process of setting up their first physical space. As such, they usually have limited funds available, and these are better spent on building up the business and hiring highly qualified employees. We offer several leases specifically designed for young companies who might not yet have the revenue to pay for all the equipment they need.

For example, you could delay payments for the first few months and therefore get set up without having to immediately spend money. There is also the option of starting with a lower fee and then gradually increasing it as your profit margins widen. The professional working with you will take you through the possibilities and help you decide which one is suitable for your startup.

 

Small or Medium-Sized Businesses Looking to Expand

The other main reason why businesses seek us out is that they are planning a major expansion. If you’ve been successfully running your office for many years, it might be time to open a second branch or expand your existing premises.

This is much more achievable when you don’t instantly have to spend money on equipment. By working with us, you could expand your business and increase your profits much faster, thereby creating the cash flow you need to easily keep up with your lease payments.

Seasonal Businesses

Not all companies operate year-round, and you might get paid much more during one season than during another. For example, accounting firms often see a great influx of customers during tax season, whereas their profits may decline once these busy months are over. It can be hard for such businesses to keep up with all their payments year-round, which is why there is a specific type of lease created just for them.

Seasonal payment leases match the cash flow of your business, so you pay off the bulk of your equipment during the peak months, and your payments are significantly reduced during the off months. This could make it much easier for you to meet your commitment and to survive when profits are lower.

Businesses Who Have Varying Needs

Because your company is always expanding and changing, your needs may not remain the same for very long. If you purchase expensive equipment, you expect it to last for at least 5-10 years, but after that time, it might no longer suit your requirements. Office equipment leasing can help you to remain much more flexible and to switch out your assets more frequently.

For example, you might know that you’ll want to rebrand your business in a year’s time. In such a situation, you could get a 12-month lease and then exchange your items for ones that better fit your new image. What’s more, you might be working on a project that requires certain types of equipment, but once it’s over, you no longer need these things. With a lease, you can simply give them back at the end of your term and your payments for them will stop.

Businesses Unsure About the Future

Finally, not all business owners are sure whether they will operate in the same way in future years. For instance, you may want to attempt an expansion for a year but have the option to amend or give up the plan if it doesn’t work out. Getting a lease could be your way of experimenting with different options without making a commitment that is hard to back out of.

You could go for a flexible contract that allows you to either keep your items at the end or give them back to us, depending on how things work out. That way, you don’t have to project too far into the future, and you can take things one step at a time.

Get the Equipment You Need

There are many benefits to a lease. Small businesses can get started with a much lower amount of capital, and mid-sized companies will be able to expand at a much faster rate. Any profits you make can go directly back into the business, and you don’t have to spend them on new equipment. Call or message us at Noreast Capital to find out more about the leases we offer. No matter the size of your operations, you’re sure to find something suitable.

Business Equipment Leasing: What Sort of Equipment Can Be Leased?

Setting up or expanding a business can be challenging, especially because you have to pay for the space, the workforce, and all your equipment at once. A possible solution is business equipment leasing, which allows you to spread out the cost of your items and remain more flexible. There is a wide range of different options and products available, both physical and digital.

A large lending company such as Noreast Capital can help you gain access to almost everything your business needs: furniture, large electrical items, an HVAC system, and even software. Small and mid-sized businesses can benefit from this because they can expand faster, invest more money in expanding their operations, and exchange old equipment more frequently.

What Equipment Can Be Leased?

Whether you’re thinking of starting a new business or you’re already running a company and hoping to expand, leasing could be a great option for you to make it happen. The main advantage is that you can gain access to the equipment you need without having to make the high upfront investment. This could allow you to grow your business faster or get started at a much lower cost.

There are almost unlimited types of equipment you can lease, and they cover the majority of business ventures. For example, you can borrow restaurant equipment, office furniture and electrical devices, security equipment, and even software. No matter what your needs are, you should get in touch with Noreast Capital to find out whether we have the suitable tools for your business.

Large Pieces of Restaurant Equipment

If you’re setting up a new restaurant or expanding your current one, you might not have all the capital you need to purchase the large pieces of equipment required. In such a situation, you can simply lease them, either temporarily until you can buy, or permanently. That way, you can reinvest all your profits instead of spending them on expensive gadgets.

At Noreast Capital, we can lend you a wide array of tools you need to set up your restaurant or catering business. This might include refrigerators, ovens, dish machines, beverage dispensers, fryers, and ranges. In addition, we can also provide you with furniture if you would like to offer onsite dining, and we can help you to access an HVAC system that suits your venue and local climate.

Office Furniture and Tools

There are a wide range of businesses that require offices, and not all of them have the resources to immediately purchase all their furniture and tools. For this reason, these items are one of our most popular classes of equipment. We can provide you with photocopiers, telephones and the associated cabling, printers, scanners and other graphic design equipment, and furniture such as desks or chairs.

By making use of business equipment leasing, you can expand your operations faster and add more space to the office without having to worry about the cost of the equipment. In fact, we have different types of leases that suit a wide variety of businesses, so you can choose to start repayments immediately or to delay them. If you have a seasonal business, we can even charge you less during the months you don’t have cash coming in.

Security Equipment

Every physical business needs to be adequately protected from crimes such as theft, burglary, or vandalism. Some of the best types of security are cameras either outside or inside and an alarm system, but there are other options that could be suitable, depending on the type of business you run and what assets you keep at the premises overnight.

Because security equipment can be extraordinarily expensive, you should consider starting out with a lease. If you decide to remain on the premises and you like the system, you can always decide to purchase your equipment at the end of the lease term. However, starting out by lending can help you avoid the large upfront investment that comes with high-quality security.

Software

Borrowing physical items isn’t the only type of business equipment leasing that exists. In fact, we can also provide you with the software necessary to run your company. As you may already know, it can be expensive to purchase software for advertising, accounting, graphic design, or business management upfront. If you don’t know whether a certain tool is right for you or you don’t anticipate using it long term, a lease could be a much better option for you.

In addition to the fact that you’ll pay less, you can also deduct leased software from your taxes. That’s why countless other businesses have decided to choose this option and are now gaining access to the newest technology without having to spend thousands upfront. What’s more, because the lease term is limited, you’ll be able to upgrade to newer versions of the same software as soon as it comes out.

Is Business Equipment Leasing for Me?

Now you understand what kinds of products we lease, you might wonder whether this is the best option for you. After all, isn’t it more expensive to lease than to purchase items upfront? The answer is that it depends. Although it can be cheaper to buy everything, starting your business might require a lot of different types of equipment, which means you’ll have to take out loans. This can be more expensive than a simple equipment lease.

What’s more, you only pay a low monthly fee when you lease, which means that you get to keep your money for longer. If you reinvest it into the business wisely, you could make a return that far exceeds the amount you’d save by buying upfront. That’s why many smart CEOs and business managers opt to borrow their equipment and pour all the resulting resources into expanding their company.

You Want to Get Started Now

Some companies who get a lease from us are startups that are opening their first office. Because it’s rare that such a business already has significant assets, they usually only have two options: get a loan and purchase equipment upfront or get a lease. As mentioned, the former option can be more expensive, particularly if you are not well-known yet and are therefore unlikely to get the most advantageous interest rate.

That’s why leasing could be a much better deal for you. There are many different types of leases offered, so you’re sure to find one that suits your individual needs. For example, you could postpone payments for the first few months, which gives you a chance to get set up and begin trading. Then, you can pay increasing amounts as your business expands and grows. This delayed payment can give you the boost you need to become successful.

You Want to Expand

We also work with mid-sized companies that are established in their community and are looking to branch out. You may increase your office space, set up a new branch somewhere else, or break into a new market. These changes become accessible to you with a leasing program, and you can grow your operations much faster than you could if you had to use your own money to purchase everything.

You Need Equipment for a Short Time Period

Not every office and workspace is permanent. At some point, you might have to set up a temporary space as you work on a particular project or complete an assignment. It makes no sense for you to purchase all the equipment needed for this, especially as you won’t be able to sell it on for much money once it has been used. In such a situation, leasing is the most attractive option because you can avoid a large expense that doesn’t serve your business.

You Need the Newest Equipment

New products come on the market regularly, and leasing can help you remain flexible in what items you use. When one of your tools becomes available in an updated form, you can switch to the newer version as soon as your current lease is up. In this way, your business remains on the cutting edge and attracts more customers because you have embraced leasing.

Business equipment leasing is a great strategy used by many successful small and mid-sized companies. Whether you are looking to set up for the first time or expand an established company, you can access the items you need without having to deal with a large upfront cost. Instead, you can spread out payments over many months or even years and therefore reinvest more money into growing your business.

We offer a wide range of equipment that can suit many businesses. For example, you can lease electrical devices needed for a restaurant, security equipment, office furniture and tools, and software. When your lease is up, you can give your items back, purchase them, or upgrade to a newer version. Call or message us now at Noreast Capital to find out more and to speak to one of our leasing experts. We can help you find the perfect deal.

How Do Equipment Leasing Companies Work?

If you run a business, you know how much equipment is needed in the workplace. From fax machines and printers to computers and specialized hardware, a lot of different equipment goes into running a successful business. Top equipment leasing companies like Noreast offer an excellent range of services to help businesses grow and ensure they have the necessary facilities to serve their customers.

How Do Equipment Leasing Companies Work?

The Basics

Many folks don’t realize the benefits of leasing office equipment or even that leasing equipment is possible. In fact, it’s becoming an increasingly popular practice, allowing businesses of all sizes to expand their operations in a cost-effective manner.

And there are so many different options, allowing you to get the best deal for yourself and your business. Whatever you’re looking for and whatever your needs, leasing could be an amazing option for you.

What Kinds of Equipment Can You Lease From Top Equipment Leasing Companies?

When it comes to leasing, if you can think of it, you can get it. All kinds of equipment are available, allowing you to expand your business capabilities. From simple office furnishings like desks and chairs to printers, fax machines, and printers, you’ll be able to get exactly what you need.

Standard office equipment is often leased as standard, including desks and chairs, but more specialized options, like medical or culinary equipment, are also available. Equipment is normally ordered straight from suppliers, so you’ll benefit from an enormous range of quality products.

Top-Quality Customer Service

When you lease from Noreast, you’re guaranteed excellent customer service. You’ll be assigned a representative to take care of you and your company, ensuring you get the best out of your lease and have access to support whenever you need it. You can call your representative within business hours or access online help whenever you need it, ensuring round-the-clock support.

Not only will your representative be available to help with any questions about the process and any issues that may come up, but they’ll also provide the training your staff will need to operate the equipment, giving you a complete, well-rounded customer experience. As one of the top equipment leasing companies in the country, we’re committed to going the extra mile for our clients.

Which Businesses Can Lease Equipment?

All kinds of businesses are making use of equipment leases, but it’s a particularly popular option with small and mid-size businesses. In the modern world, start-up costs are increasing, and customers demand increasingly specialized equipment. That’s why the cost-effectiveness, flexibility, and added bonuses which come with equipment leasing are a great option for all kinds of businesses.

Established businesses that have been running for a year or 2 and built up a strong credit rating will find it easiest to lease equipment. But new businesses can lease too, with certain extra requirements and conditions. Whatever the status of your business, be sure to gather as much relevant information and documentation as possible, including credit reports and bank statements. Our staff will work with you to ensure the right deal for you.

Flexibility

There are as many different kinds of lease agreements as there are types of equipment to lease. Whatever kind of equipment you’re looking for, however long you need it, and what you want to happen at the end of the lease are all flexible. Whether you want to end the agreement, Fair Market Value or FMV leasing, purchase your equipment, or upgrade to new equipment, you’ve got the options you need.

The different options offer something to suit all kinds of businesses and each has its own distinct advantages. Whichever deal you choose, you’ll benefit from our expertise, as well as the added bonuses of a lease agreement.

The Fair Market Value Lease

For a flexible deal that offers the chance to acquire your leased equipment on a permanent basis, the fair market value lease is a great deal. This deal gives you multiple options at the end of your lease, allowing you to buy your equipment at market value come to the end of the agreement if you wish. You can also choose to return or upgrade the equipment.

If you do wish to retain your equipment at the end of the lease, we offer financing options to suit your needs. This is a great way to enjoy flexibility when you’re not sure what route you’ll be taking some months down the line.

10% Purchase Option

Another agreement that offers both flexibility and great financing options is the 10% Purchase Option. This arrangement allows you to buy your leased equipment at a fixed 10% of its original cost. At the end of your agreement, you can still choose to return the equipment if you decide you don’t want to buy it after all or continue the lease if that’s more appropriate for your needs.

It works almost like a standard financing agreement, only with no hidden costs, added flexibility, and dedicated customer support. This is an increasingly popular option with businesses of all kinds.

The $1 Buy-Out

This lease is popular with folks looking to expand their inventories slowly and sustainably. It allows businesses to buy their leased equipment at the end of the agreement. As the name suggests, it allows customers to buy their equipment at the end of the lease agreement for a dollar, so it’s perfect for businesses who are certain they want to retain the equipment they’ve leased.

While this agreement functions similarly to a standard purchase on finance, the fact you’ll avoid interest is a huge advantage, while it also offers flexibility in the event you decide you don’t want the equipment after all.

10% Security Deposit Lease

Offering the lowest monthly payment of any lease agreement, this option is perfect for businesses looking to pay a nominal upfront fee, then benefit from low costs throughout the leasing agreement. You’ll pay a 10% security deposit up front and benefit from lower costs throughout the agreement. This is one of the cheapest ways for any business to access new equipment.

At the end of the agreement, you won’t lose your deposit as long as you’ve adhered to terms and conditions. The deposit can also be used to extend the lease or be refunded on return of equipment, offering yet another degree of flexibility. The usual options to return equipment or extend the lease are available too.

Other Lease Options

Certain Specialized lease options are also available for businesses with different requirements. Seasonal leases are available for companies that experience limited cash flow at certain times of the year. This is perfect for businesses needing equipment at only certain times of the year. Step leases are a good option for newer businesses, offering lower payments to begin with and slowly increasing over the course of the agreement.

For those on a budget, a deferred payment plan is a deal, allowing you to begin payments between 60 and 90 days after taking delivery. This deal is perfect for businesses expecting to drastically increase revenue streams after leasing equipment, for example, companies hiring a new cohort of salesmen.

The Benefits

There are so many benefits to choosing to lease your office equipment, rather than buying it or getting it on finance. The affordable and flexible structure of leasing allows you to invest in plenty of equipment that might otherwise have been too costly for you to buy outright. Many businesses only need equipment for a set period of time, perhaps leasing half a dozen desks and computers for a few temps hired for a year-long project.

It’s also a great way to save on storage and maintenance. And many businesses use leasing as a way of quickly writing off obsolete technology. In the hyper-advanced times we live in, equipment is often rendered obsolete within a year or 2 of manufacture, meaning you lose prestige and appeal in the eyes of your clients.

Is Leasing Right For You?

If you’re looking for accessibility, value, and flexibility, leasing is absolutely right for you. A simple look at the benefits and flexibility on offer will be enough to convince most business owners, and the top service you’ll receive from Noreast staff should underline what a great option this is for your company.

It saves you having to store and maintain a bunch of equipment you don’t need in the long term. It’s also an incredibly economical option. No interest rates allow you to spread the cost without needing to invest in costly and complicated financing procedures.

The Process

The leasing process couldn’t be easier. You’ll select your preferred leasing agreement, the equipment you need, the length of time you need it for, and the supplier you want to lease from, then make an application to the leasing company. Our experienced and helpful staff will assist you every step of the way, helping you over any hurdles that may arise.

You’ll arrange financing and the details of the lease, then pay a deposit before taking delivery of your equipment. At that point, you’ll benefit from the equipment you’ve leased and be able to use it to your advantage as you grow your business.

Want to begin the leasing process or find out more? Contact Noreast Capital today for a great deal!

What Are the Advantages of Leasing Equipment for Your Business?

There are so many hidden advantages of leasing equipment for your business! It’s an especially excellent option for businesses that want to grow their company but don’t have the capital. In addition, it allows companies to make investments in the future without spending all of their money at once.

You can use leasing as a tool to help you achieve all your goals and dreams for the business, no matter what they are! Here are some of the most impactful ways that leasing can boost your business:

What Are the Advantages of Leasing Equipment for Your Business?

Lower Cost Up Front

Leasing typically offers upfront cost savings since you’re able to spread the cost of equipment over a specified term, and there are no down payments required. Fewer upfront costs result in additional cash flow when compared with traditional financing methods. In addition, when you choose to lease, your business doesn’t have to use up existing lines of credit or bump up credit limits.

Many businesses are able to pay for their equipment using lease financing before they would have been able to purchase it outright with cash or other forms of credit. Lease your equipment to save money on business expenditures (bank lines) for day-to-day operations, growth, or unforeseen business costs.

Get Equipment Faster

Getting a bank loan to purchase equipment can take weeks before you get approval. But leasing from us is lightning fast! You need only use our online credit application tool to request financing, and you’ll receive a reply within four hours – sometimes as quickly as 30 minutes!

Our documentation turnaround time is similarly fast; we can email, fax, or courier the documents overnight. Often, we can have everything set up within 24 hours. And the sooner you get approved and signed, the sooner you can get the equipment you need to make your business grow and thrive.

Flexible Payment Terms

Leasing gives you the ability to make low monthly payments as well as options for buy-out or end-of-term purchases. Also, we can provide your business with excellent credit terms and flexible payment arrangements that allow you to get the low monthly lease payments you need.

You can easily spread the cost of the equipment out over an extended period of time, so you’re never spending more than you’re making. Furthermore, we offer a selection of unique leasing plans tailored to your business needs. Some examples include:

$1 Buyout

Choose this plan when you’re completely certain you will want to buy out the equipment at the end of the lease. When your term is up, you purchase the equipment for a dollar.

Seasonal Lease

If you have a seasonal business that’s closed for certain months during the year, this is a great option for you. This way, you only make payments during the months you’re open for business.

Deferred Payment

If you need the extra time, we can accommodate you. With this plan, you only begin making lease payments 2-3 months after you obtain the equipment.

Fair Market Value

This is a fantastic, flexible option for businesses that want to keep their options open! At the end of the lease term, you can choose to extend the lease, return the equipment, or purchase it at its fair market value. We even offer financing options for the last choice.

Consistent Monthly Payments

Leasing enables you to use only the equipment you need within a budget that works for you. Once you’ve agreed to the best leasing option for your business, you pay the same rate every month for the duration of your term. Even if there is a sudden increase in interest rates, your payment stays the same. Predictable monthly payments can be a lifesaver for your business!

Save at Tax Time

Lease financing may help your company save money in taxes. Often, lease payments are 100% deductible, as it’s considered an operations expense. For example, section 179 of the IRS Tax Code enables a business to subtract the total price of certain equipment the year that it is purchased.

Some equipment may not qualify, but even then, you might be able to claim a depreciation deduction. It all depends on the business and equipment, so always ensure you check with your tax advisor to determine which savings apply to you.

Less Risk

Buying equipment outright can be risky, even if you have the capital. Marketplaces can change overnight due to the fluctuations in the economy and other unpredictable factors. Just look at how the pandemic has affected businesses!

But restaurant equipment leasing means you don’t have to worry about losing your investment. And if anything goes wrong, you’re only responsible for the lease payments, not the depreciation of the equipment itself. Leasing offers 100% financing, meaning your business won’t be responsible for any of the capital upfront. If something goes awry during the lease term—like a natural disaster—you can usually return the equipment without penalty.

No Maintenance Costs

Most leases include scheduled maintenance and regular inspections, reducing the amount of equipment downtime your company experiences. If something breaks from regular use, you don’t own it, so you don’t have to pay anything for someone to come and repair it. Likewise, you don’t have to waste valuable time and resources looking for a repair company or replacement material.

Stay Ahead of Your Competition

Perhaps one of the most significant advantages of leasing equipment is that you can affordably obtain all the latest, cutting-edge equipment that enables your business to run at peak efficiency. That means you can keep up with competitors and deliver exceptional customer service that keeps your clients coming back for more.

For example, installing the latest office telephone system that can accommodate a higher volume of calls means you can deliver on projects more quickly and efficiently than the competition. That kind of service gives you an edge, even if your competitors are a bigger company.

Escape Obsolete Equipment

If you work with technology or equipment that needs regular updating, leases work to your advantage – you’ll never be stuck with old equipment because you don’t own it! If your equipment becomes obsolete or no longer functions as it should, leasing gives you an easy way out to avoid costly repairs or replacement costs while keeping up with current technology. Leasing offers the flexibility to make confident, informed decisions on what updates are needed without the long-term commitment.

Improve Safety and Security

Businesses that own their equipment will naturally try to get the most mileage possible before replacing it. But depending on outdated equipment can be detrimental to the business’s safety and security. For example, old computers can pose a security risk if not replaced or adequately maintained.

Similarly, old vehicles can break down at the worst possible time. Electrical equipment could break and cause a fire. But by leasing your equipment, you never run the risk of such problems because you’ll never need to hold onto old equipment in an attempt to save money.

Improve Your Finance Options

Leasing conserves your capital. Instead of being treated as long-term debt, lease payments are reflected as a business cost. That means less debt on your balance sheet, opening you up to better financing options that support your business. It also preserves your lines of credit so you can save that reserve for emergencies or other projects. That extra capital gives you a cushion to operate on.

Product and Leasing Expertise

Another benefit to leasing the equipment is your leasing company has comprehensive expertise on the product you’re using. That means that we can not only hook you up with the best leasing solution for your business, but we will arm you with the optimal equipment and show you how to use it most effectively.

There’s no need to hire an in-house professional to set up the tools or train your staff. For example, if you’re renting network equipment, you would likely need to hire an IT person to set it up and maintain it. But when you’re leasing the equipment, we take care of that for you!

Flexibility for Your Business to Evolve

Because of the transient nature of leasing, you have the freedom to plan and change your equipment needs as your business grows. For example, if you’re planning an expansion but don’t know how big a company you’ll be in five years, leasing can help protect your cash flow while still facilitating growth. Then when business is booming, and you need to scale your equipment needs, leasing easily allows you to upgrade your assets.

The numerous advantages of leasing equipment make it a no-brainer for many businesses. And with so many flexible lease options at your disposal, you can get the gear you need on just about any budget or timeline.

Whether you’re looking for short-term leases for office equipment or long-term leases for restaurant products, there’s something for everyone! So if you’re ready to get the products you need to accelerate your business to new heights, contact us at Noreast Capital today!

How Does Equipment Leasing Work?

Running a small or medium-sized business can be hard work, particularly if it involves renting a physical location and purchasing a lot of expensive equipment. For this reason, the vast majority of U.S. companies use equipment leasing in a part or all of their operations. Not only can this kind of agreement free up cash and spread out the cost, but it can also be personalized to a business’s particular needs.

There are many types of leases that cater to the needs of various businesses. While most will use a standard lease plan, some startups or seasonal companies might benefit from specialized plans that take their individual situation into account. With a simple application process and flexible plans, Noreast Capital can help vendors to set up great plans for their customers. Let’s have a look at the leasing process and how it could help you grow your business.

What Is Equipment Leasing?

Sometimes, it doesn’t make sense for people to purchase a piece of equipment up front. For example, if it is very expensive, they have to furnish an entire business at once, or they only need the equipment for a short time, it might not make sense to buy equipment outright. In such a case, they can borrow it from a vendor instead.

In its simplest form, the setup is a rental service, where the lessee agrees to pay the lessor a certain amount of money for the use of the equipment. Payments are usually periodical, and in most cases, the lessee will have to pay a fee once a month. Once the lease agreement ends, it can either be extended, the piece of office equipment or other types of equipment can be given back or bought, or the lessee can decide to upgrade to a newer version and sign another lease.

Types of Leases

Just like other financial products, there are many options when it comes to choosing a lease. While some agreements will offer a lower monthly payment, others come with the right to buy the piece of equipment cheaply at the end of the plan. Depending on what a customer or business needs, they will opt for a different plan. Here at Noreast Capital, we provide a number of standard and specialized leasing plans that will suit different people and businesses.

Standard Lease Plans

There are various standard lease plans that can be offered to your customers. Those who are certain that they would like to buy the piece of equipment at the end of their lease will be well served with a $1.00 Buy-Out plan, which stipulates that they may purchase the goods for $1 once the agreement ends. People who opt for a Fair Market Value lease benefit from more flexibility and a lower monthly payment.

Once their lease is over, they can extend it, give back their equipment, or buy it at a fair market price. A 10% Purchase Option lease offers the customer the chance to buy the piece of equipment at 10% of its original value once the agreement ends, extend the lease, or terminate it. In most cases, the cheapest plan is the 10% Security Deposit lease, which requires customers to pay a deposit that will be returned to them once they give back the equipment.

Step, Deferred, or Seasonal Lease Plans

Some businesses might have special requirements and benefit from an alternative option. For example, if a company is very new, they might not yet have the means to pay the full monthly fee, so a step lease plan can help. This allows them to pay a lower fee at first, which will then be increased as time goes by and their business starts to pick up.

Alternatively, a deferred lease plan can offer them the option to start payments only 60-90 days after the beginning of the lease. This is a great plan for brand-new businesses that might not have cash flow initially. A seasonal lease plan works well for businesses that operate at reduced capacity during certain seasons. They can pay more when their business is strong and then stop paying during the slow months.

How Can You Set Up Leasing for Your Customers?

The easiest way to set up leasing and attract more customers is to use a service such as Noreast Capital. By involving professionals, vendors can make sure that their leasing contracts are solid, they will be making a profit, and they are offering exactly what prospective customers are looking for. When a vendor gets in touch with us by filling out the online form, they’ll be approved within 2 hours, and our account managers will get in touch.

Our representative will ask about your product and who might want to lease it, then discuss with you what terms would be best suited to this kind of customer and how you can set up a leasing agreement. They might also speak about how you can get the word out, so customers know that you are now also offering leases. In fact, Noreast Capital serves businesses in all U.S. states, so you’re likely to find new customers through national exposure.

What Are the Benefits of Leasing?

Now that you know what equipment leasing is and how it works, you might wonder why it’s worth it to both vendors and customers. Wouldn’t it be simpler for the vendor to sell a piece of equipment? And wouldn’t businesses save money by buying their goods upfront? Although leasing adds to the bill, the vast majority of U.S. businesses aren’t able to buy all of their equipment up front, so they opt for a lease instead.

By offering this option, vendors who sell goods to other businesses can cater to all kinds of firms, from small one-man operations that are just getting started to large businesses with hundreds of employees. An estimated 80-85% of companies lease at least some of their equipment, so the market is vast and the demand is there.

A Smaller Bill Upfront

Many businesses, especially those that are just getting started, don’t have large amounts of cash available to purchase their goods. For this reason, they are looking to use someone else’s equipment and pay a monthly fee instead. As mentioned, there are different plans to suit the needs of various companies, so a startup might benefit from a step lease plan and an established business might go for the 10% Security Deposit lease to lower their costs.

For vendors, leasing can be a great source of regular income. While an upfront payment is a simple, one-off transaction, a lease agreement goes on for many months, so the vendor can gain regular income. This can make budgeting easier. They will also make more money from the product they are selling since people who lease their equipment generally pay more in total. Both of these factors can make leasing a great business opportunity.

More Flexibility

When setting up a business, flexibility and a healthy bank balance are key. Leasing options like Fair Market Value or FMV leasing for instance allows business owners to spread out the cost of their new equipment over several months or even years, so they can hit the ground running. They will also have a lot of control over their budget because the monthly payments are likely to remain the same over time, which makes planning ahead and managing the company’s finances easier.

A Simple Application Process

If you’re a vendor, you can easily apply to Noreast Capital using the online form. It should take you only minutes to fill out, and we’ll respond within two hours. You will be contacted by a customer service specialist, who will take you through the different options and tell you more about how to sign up.

Your customers looking for a lease will undergo a similarly easy process. We aim to keep our lease documents very simple and to two pages or less, so everyone can be confident in what you are signing.

Who Can Take Part?

No matter what type of business you’re in, leasing might be a great option to expand your operations. Almost everyone needs some kind of equipment, whether it’s physical or virtual such as a website. Our partners come from a wide variety of backgrounds that include the hospitality sector, medical fields, construction, and manufacturing. However, we also work with firms that lease electronic equipment, software, and even emergency vehicles.

Equipment leasing is a great tool for businesses who want to cut down or spread out the initial cost of their equipment. It offers more flexibility than an upfront payment and allows business owners to keep their cash flow healthy. As a result, businesses can use their resources more efficiently and expand faster. For the vendor, leasing can be a stable source of income and a way to attract a very large customer base.

The easiest way to get started is to enlist the help of professionals, who will be able to advise you every step of the way. If you’re a vendor, your dedicated account manager will help you to determine the best leases for your type of equipment and get you set up with simple agreements that won’t confuse prospective customers. Call us at Noreast Capital to find out more and get started.