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What To Do When Equipment Financing for New Business

Every year, countless startups are founded, with business owners hoping to build a long-lasting, profitable company. But unfortunately, most of these new businesses fail very quickly. Within the first year, 10% of startups go out of business, and after the first five years, 80% cease to operate. Due to this high level of risk, it can be hard to get equipment financing for new business.

This is a problem because most startups don’t have the funds necessary to purchase all their equipment. Trying to buy everything in cash can slow you down and prevent you from succeeding. So, what should you do? Fortunately, there are some leasing companies that are willing to lend to new businesses, as long as the owners have a strong financial background and are willing to act as guarantors. Read on to find out how you can get equipment financing.

Can a New Business Get Their Equipment Financed? 

If you’ve ever tried setting up a new business, you’ll know how challenging it is to gain access to all the equipment you need. You might have to rent a physical space, purchase office furniture, buy specialized machinery, and acquire computers for all your employees. The cost of these items adds up, and financing some of them can take a lot of the pressure off. But what should you do if most lenders won’t consider you because your company is new?

The answer is that you should keep looking for a suitable lender. There are leasing firms out there who are happy to lend to new businesses, as long as the CEOs provide enough documentation to prove that the business idea is sound. At Noreast Capital, we will consider you if you have a strong financial background and are able to provide a personal guarantee.

How to Get Equipment Financing for New Business

Getting equipment financing can be harder for a brand-new business, but don’t let that deter you because the benefits of leasing some of your items are significant. To get started, you’ll have to make sure all your paperwork is in order, so you can see what assets your company already has and what is still needed. Then, you should consider what type of equipment you would like to lease.

Purchasing some items outright and leasing others could be a good idea because it allows you to reduce the total cost of starting your business, but you won’t have to go into too much debt. Once you’ve determined what you need and what you can afford, you can reach out to an equipment financing expert, who will help you apply for a loan or lease and work with you as you get your line of credit set up.

Get the Paperwork in Order 

Before you speak to a leasing company, you need to make sure that your business plan is sound and that you can afford a lease. At Noreast Capital, we usually ask startups to provide us with their supplier contracts, pro forma financial statements, and business plans. If we believe that you don’t have a good foundation to build your company on, we might not be able to provide you with a lease.

Additionally, you should check up on your personal finances. The owner of a brand-new business almost always needs to provide a personal guarantee, but this only works out if he or she has some assets. If you have savings you could use towards the loan or lease if necessary, we are much more likely to issue credit than if you have no money available should your business fail.

Figure Out What You Need

A good leasing company like Noreast Capital will be able to meet your needs no matter what type of items you require. We lease a wide variety of equipment, from office furniture to electronic devices to specialized kitchen equipment. We can also provide you with heavy machinery for construction and with software for accounting, keeping track of client relationships, and more.

Take stock of what assets your business already has, then make a list of the items you still need. You can estimate what each one costs to determine how much debt you will need to take on.

Consider Purchasing Some Assets and Financing Others

No matter what industry you’re in, starting a new company is hard. To get over the initial challenges, many of the smartest CEOs combine equipment financing for new business with purchasing some assets outright. This can be a great option because it allows you to get everything you need without spending all your money or going into too much debt.

The smaller the lease or loan amount, the bigger the chance that we are able to issue it. If you come to us asking for less than $50,000, it’s more than likely that we can help you out. However, brand-new businesses that ask for more than $100,000 are sometimes rejected because the risk level is too high. Once you’re more established, you can always come back to Noreast Capital and ask for a bigger lease.

Reach Out to an Equipment Financing Expert 

Once you’ve gone through your paperwork and determined which pieces of equipment you’d like to lease, you can get in touch with us by sending us an email, calling, or filling in the contact form. Your assigned case manager will get back to you as soon as possible and discuss your options. Because we offer leases for a wide variety of businesses, you’ll almost certainly find something to suit you.

For example, startups often choose a step payment lease. The repayments on this lease start low and increase over time. That way, you have time to build up a customer base and make a profit before you have to start paying us. Other businesses choose a seasonal lease, which can be tailored to the fluctuations in income a business experiences. This option is particularly good for seasonal businesses like accountants.

Why Should a New Company Finance Equipment? 

Equipment financing for new business is extremely popular. But is it a good option for you? Why should a new company lease its equipment instead of buying it? There are many reasons, but some of the most compelling ones are that a lease reduces your initial funding needs, allows you to remain flexible and current, and facilitates the expansion of your business.

Reduce Your Funding Needs 

There are various ways small businesses acquire the funds they need to get started. You might have an investor who is willing to lend you the money, or you might have launched a crowdfunding campaign. But since so many companies are looking for funding, there is a lot of competition, and it can be hard to access enough cash to purchase everything you need.

By choosing to lease or borrow some of your items, you can lower the initial cost of your startup. As profits start to come in, you can then pay off the equipment. This allows you to get set up with a lot less and therefore makes your plan more realistic.

Remain Flexible and Current 

Flexibility is one of the most important characteristics of a successful small company. Every year, there are technological advances that change the business landscape considerably. Therefore, firms that want to remain profitable in the long term must be flexible and willing to move with the times. When you buy expensive equipment outright, this can be a big challenge because you’ll need to use it for many years to make your investment pay off.

In contrast, a lease can be as short as 12 months. If you decide that you want to take your business in a different direction, you can simply return the items and choose different ones that better fit your needs.

Expand Your Business Faster 

Once you’ve started making a profit, you might want to expand your business further. This could involve offering a new product or service, hiring more employees, or even opening a new office or shop in a different location.

If you’ve been leasing some of your equipment, it’s likely that you have been able to save a larger percentage of your profits instead of spending them on purchasing items outright. This makes the expansion easier and faster. What’s more, you’ll already have a line of credit open with your leasing company, so you don’t have to go through the application process again.  

Get the Financing You Need

Getting equipment financing for new business can be hard because they are perceived as very risky. Because 80% of startups fail within the first five years, many leasing companies aren’t willing to lend any money to businesses without a proven track record. However, some lenders will allow you to access equipment financing if you have a good financial background and are happy to act as a guarantor for your company.

To get started, you should make sure all your paperwork is in order. You’ll also have to take stock of your needs and decide which items you want to purchase outright and which ones you want to lease. Then, you can reach out to us, providing all the necessary details. We will assign you a case manager, who can take you through the application process. Call or email us today at Noreast Capital to find out what kind of lease you can access.

How to Lease Equipment

No matter the industry, most businesses need a significant amount of equipment. While it can sometimes make sense to purchase this directly from the manufacturer, leasing can be a great alternative because it conserves capital and allows for more flexibility. It is estimated that over 80% of businesses in various sectors lease equipment.

Fortunately, it is extremely easy to get started. Once you know what items you need and how much they might cost, you can compile all the relevant documents and contact a reputable leasing company. They will make you an offer and ask you to pay a deposit. As soon as you’ve done this, you can take your new equipment to your business location and use it. Today, let’s have a closer look at how leasing works and whether it could be a good idea for you.

How to Lease Equipment 

When you get a loan, ownership of the equipment transfers to you. At the end of the loan term, the item is yours to keep. During the lease, the equipment belongs to the lender and you pay a monthly fee to use it.

Once the term comes to an end, most lessors allow you to decide whether you would like to keep your item, give it back, or renew the lease. This is very useful because it allows businesses to operate more flexibly. What’s more, it’s easy to get started, and any business that has been operating for a while and is in good financial shape is eligible for a lease.

Take Stock of What You Need 

First, you should take inventory of any items you already have and figure out what else you have to buy. Good leasing companies offer a wide variety of products, so you can lease almost everything you need. For instance, we at Noreast Capital can provide you with office furniture, electronic devices, kitchen equipment, tools related to security, machinery used in construction, and even various types of software.

Together with your team, you should decide which items you’ll need for a long time and which ones you might like to replace every few years. Often, the former can be purchased outright, and the latter can be leased.

Compile the Relevant Documents 

Depending on the financial stability of your company and the size of the loan you are requesting, you’ll need to provide certain kinds of documents to your leasing company. If you’ve been in business for more than two years, you will have to show some of your bank, trade, or other financing references. Those requesting large loans should also provide financial statements.

If you’re a brand-new company or you haven’t been operating for more than two years, a personal guarantee might be necessary, but as long as the owner or director is in a good financial position, a lease should still be possible. In some cases, startups will also have to show pro forma financial statements, business plans, and supplier contracts.

Contact a Leasing Company 

Once you’ve come up with a list of items you need and compiled all the relevant documents, it’s time to lease equipment from a reputable company. Here at Noreast Capital, every new business is paired up with an account manager, and you can contact this person whenever you have questions or a request.

The manager will speak to you about your business’s background, current operations, and future plans. Then, they can show you what equipment we offer, and you can choose the items that best suit your needs.

Pay Your Deposit 

There are various types of leases, and your manager can explain the differences and let you know what each one will cost. For example, the idea behind a capital lease is that you own the equipment at the end, whereas a true lease might offer you more flexibility and allow you to return the items at the end.

When you’ve found a suitable arrangement, you will be asked to pay the deposit. Then, you can take possession of the equipment and begin using it at your business location. The whole leasing process might only take a few hours, especially if you are requesting items that cost less than $50,000. Larger leases require more thorough financial checks, so you might have to wait for two days until we get back to you.

Decide What to Do with the Equipment at the End

Most leases are 12-60 months long, with the most popular term being 36 months. At the end, businesses can decide what they would like to do with the equipment. In some cases, they buy it from the leasing company and continue to use it. However, this often isn’t the best solution, since technology might have improved in the years since the lease was signed.

If this is the case, company owners might decide to give back the old item and choose a more updated version, then sign a new lease. If the nature of the business has changed, the equipment might no longer be necessary, or the owners might want to select something different to meet their needs. As you can see, leasing is very flexible, and it allows businesses to scale their operations or pivot and target a new market at will.

What Are the Advantages of Leasing? 

There are many reasons why so many firms choose to lease instead of buy. The primary one is that they can avoid making an upfront investment and therefore keep more of their capital. Additionally, leases offer more flexibility, and there is a suitable option available for almost every business. Unless a company is struggling financially, they are likely to be eligible for a lease.

No Upfront Investment 

When you’re just starting out, you might not have enough money to purchase all the equipment you need. In such a case, a lease can be a great way to reduce the financial burden and make your startup more feasible. Instead of having to worry about raising money to purchase your items, you can focus on improving the efficiency of your operations straight away.

Successful larger companies can also benefit from leasing because it allows them to keep a larger percentage of their profits and reinvest them into growing their business. As a result, they might be able to open up another branch or expand into different areas of the country.

Various Options to Suit Companies’ Needs

Every company that wants to lease equipment is different, so lenders have developed a number of options. For example, businesses that operate seasonally can pay more during their busy months and less during quiet times. Similarly, startups that don’t have a large customer base yet can delay payments for a few months or pay less at the beginning and more as they grow.

If you run a special type of business or you have a unique request, don’t hesitate to speak to your account manager. They will be able to put together a customized lease that suits you.

More Flexibility 

Leases offer an enormous amount of flexibility. When business owners sign a contract with Noreast Capital, they often don’t know whether they will give back their equipment at the end of their term, sign another lease with us, or purchase the items outright. Depending on market conditions and the direction the business goes in, the CEOs can choose the best option once the lease is up.

Most People Qualify 

When offering you a lease, the lender takes on a certain amount of risk, so they have to double-check that you are likely to pay your monthly, quarterly, or annual fee. However, it’s easier than you might think to qualify for a lease. Almost every business can get equipment for up to $50,000, and many can borrow much more.

The best way to find out what kind of deal you can get is to speak to your personal account manager. They can determine whether you need to provide a personal guarantee and what documents are required. In some cases, you can even get a line of credit in advance, which allows you to complete the leasing process faster once you’re ready to borrow some equipment.

Leasing for the Future

Businesses all over the country lease equipment because it allows them to avoid an upfront investment and provides more flexibility. What’s more, there are various options that suit companies’ needs, and most people qualify if they have been doing business for a while or if they have a solid financial background. To get started, you should figure out exactly what kind of equipment you need and then compile your financial documents.

Once you have everything in place, you can get in touch with your leasing company and discuss your situation. The expert assigned to you will offer you a lease and ask you to pay a deposit. Most contracts last for 12-60 months, and at the end, you can decide whether you’d like to extend your lease, buy the equipment, or return it. Get in touch with us now at Noreast Capital to find out more about the equipment we offer and get the leasing process started.

Small Business Equipment: Is it Better to Lease vs Buy?

Expensive equipment is crucial for a wide variety of small businesses. Whether you work in the hospitality industry, construction, security, or you run an office, you’ll need to obtain furniture and specialized tools. Fortunately, there are various ways of gaining access to everything you need without having to purchase your items outright or get a loan. Instead, you can choose small business equipment leasing.

But is this latter option good for small businesses? Can you increase your business’s efficiency by leasing instead of buying? Often, the answer is yes because you can hold on to your capital, remain more flexible, predict your budget more easily, and select a leasing option that works well with your business model. Today, we’ll have a closer look at the difference between leasing and buying so you can choose the solution that suits you best.

What Is the Best Way of Gaining Access to Equipment? 

There isn’t one best way of obtaining the equipment you need. Buying tools outright, obtaining a loan, and leasing are all viable options for small businesses. In fact, many companies, especially ones that require a wide variety of items, do all three.

Each of these methods of acquiring goods has advantages and disadvantages, and the one you choose depends on your individual risk profile, the needs of your business, and your future plans. Buying can be a great solution if you know you’ll need the items in the long term, but leasing is better if you’d prefer to keep your options open.

Small Business Equipment Leasing

When you lease a piece of equipment, the lessor remains the owner. They agree to give you access to the tool or machine for the duration of the lease term, which is determined at the start of the lease. Here at Noreast, we typically offer lease terms from 12 to 60 months. During that time, the small business pays a monthly, quarterly, or annual fee that covers the use of the piece of equipment and, depending on the contract, maintenance, and repairs.

When your lease is up, you have several options. Usually, you can choose to buy the item from the lessor, give it back, or upgrade to a different model and sign another lease. This flexibility is why leasing is such a popular option for many businesses.

Purchasing Equipment Outright 

Sometimes, it may make sense to purchase a piece of equipment outright. If you choose this option, you have to pay the full price of the item right away, and you become its owner. If you know for sure that you will use a tool or machine for many years and won’t need to upgrade it, this could be a good solution.

However, many businesses find that purchasing all their items is too expensive, especially if they are just starting out or would like to expand their operations in the future. What’s more, owning all your equipment can be a hassle. Whenever you want to change the focus of your business, you first have to get rid of unwanted items, which can take time. When you lease your equipment, it can be given back to the lessor without any hassle.

Obtaining a Loan 

Businesses that can’t buy their items upfront often consider a loan. When you finance your purchase in this way, you become the owner, but you only pay a deposit upfront, and the rest of the payment is spread over several months or years. Generally, loans are more expensive and less flexible than leases, but they could be a good option for business owners who don’t qualify for a lease.

Loans have built-in safety nets, so they are less risky for the lender. Therefore, people who have bad credit are eligible even if they can’t obtain a lease. But unfortunately, loans often require a down payment of 10-30%. This isn’t always the case with a lease, so the latter could be the superior choice for businesses that want to keep their capital.

What Are the Advantages of Leasing? 

As you can see, there are various options for companies looking to purchase tools or machines. But while buying the items upfront or obtaining a loan can be suitable under certain circumstances, more and more people are opting for small business equipment leasing. Not only is this solution more flexible, but it also allows you to predict your finances more closely.

In addition, there is a great variety of leases currently available, so almost every firm can find one to suit them. The professionals at Noreast Capital can show you what the possibilities are and help you decide which one would meet your business’s needs.

Keeping Your Capital 

One of the primary benefits of leasing is that you get to keep your capital. This is important for small businesses that are just starting out. If you’re setting up your company from scratch, you might not have any money to purchase machines, furniture, and tools, especially if you are also renting office or shop space. A lease can be the perfect solution because it allows you to open your business without having to do a lot of fundraising first.

But established or mid-sized firms that already have a decent amount of capital can also benefit from leasing. Business owners can save the money they would otherwise spend on equipment and use it to expand the company much faster. In this way, leasing can improve the long-term prospects of a business and help it to grow and expand.

Increased Flexibility 

In the past, people ran their business in the same way for many decades. But in our fast-moving world, this is no longer possible. Brand-new technologies quickly become obsolete, and many businesses have to pivot several times per decade to meet customers’ demands. When you purchase all your equipment outright, you can’t change your operations unless you sell your items and buy new ones.

Often, this process involves significant losses because equipment depreciates quickly. By opting for a lease instead of an outright purchase, you can remain much more flexible. The average lease term is 36 months, and at the end of the contract, you can reevaluate whether you still need the piece of equipment or not. That way, you can change the way you run your business frequently and keep up with the times.

More Predictability

Many business owners believe that buying equipment outright leads to more predictable finances and lower expenses in the long run, but this isn’t always the case. When a tool or machine you own breaks, you have to come up with the money for repairs, or you have to replace it. But depending on your lease, maintenance could be included in your monthly or quarterly fee.

That way, you know exactly what you will spend each month, and there are no unpleasant surprises. What’s more, you don’t have to spend lump sums, and the cost of your equipment is more spread out. This facilitates budgeting and expense planning.

Great Deals for Everyone 

Not every company has the same requirements. Small business equipment leasing is one of the most flexible options out there because there are many types of leases. When you speak to our representatives, they can help you choose the one that fits your firm’s current needs. If you’re a new business and haven’t built up a large customer base, you could opt to delay payments for a few months or pay increasing amounts as your profits grow.  

Some professionals, such as accountants and gardeners, run seasonal businesses that are more in demand during certain times of the year. They might be well-served with a seasonal lease, which allows them to pay more during the busy months and less during quiet times. No matter what individual requirements your business has, you’ll find a suitable lease.

How to Find Out More 

Now you know how a lease works and why it could be a good option for your business, you might wonder where to turn to. Many equipment manufacturers offer leases, but dealing with each one can be a hassle. Instead, you should contact a lender like Noreast Capital. We work with a wide variety of manufacturers and can therefore offer you all-in-one service.

From us, you can lease a wide variety of tools including specialized machinery, safety equipment, office furniture, and software. When you give us a call or send us a message, we’ll assign a specific person to your case. This professional can then help you with any questions and assist you as you lease equipment.

Almost every small business requires furniture, tools, or machinery. But if you’re just starting out, or you’re hoping to expand your operations in the near future, buying everything outright isn’t the best option. Instead, you could benefit from a loan or small business equipment leasing. Both possibilities allow you to spread out the cost of your equipment, but leasing has some additional advantages.

Because you can choose from a wide variety of leases, you can tailor the terms to your business’s individual needs. What’s more, you remain flexible because you don’t have to commit to a certain piece of equipment for the long term. Get in touch with us now at Noreast Capital to find out more about the financing options we offer and to fill out your application form.

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 could be the way for you to grow your revenue over the coming months.  

Getting a lease isn’t very difficult, especially if you can prove that your company is profitable and that you can easily keep up with your monthly payments. A reputable equipment leasing firm like Noreast can approve you within a few days. That way, there won’t be any delays, and you can begin building your business right away. In today’s post, we’ll have a closer look at how leasing works and why it could be the best choice for you.

What Steps Do I Have to Take to Lease Equipment? 

If you’re a small business that is well-respected in your local community, it won’t be hard for you to obtain the equipment you need. In fact, we work with both established and up-and-coming firms, as long as the founders can prove that they are financially stable. To make the application process as simple as possible, you should make sure you have all the relevant documents in place before you get in touch.

Once you’ve decided what equipment you’d like to lease and what your budget is, you can reach out to us at Noreast, and we will assign one of our professionals to your account. This leasing specialist will take you through your application process and help you select the best options. If you have special requirements, they can adjust the terms of your lease to suit your business model.

Take Stock of Your Financial Situation

Before you reach out to us, you should make sure you understand your company’s financial situation. Put together all the documents you might need during the application process, such as your trade references, bank statements, and financial statements. If you have been in operation for over two years and are looking for a small lease, it’s likely that we won’t ask you for much documentation.

However, new companies are considered riskier, so you may need to provide a personal guarantee if you are a startup. When the owners of a business provide us with such a guarantee, they prove to us that they are confident in the success of their firm and serious about their lease. Depending on the situation, we may also require business plans, supplier contracts, and pro forma financial statements.

Decide What Equipment You’d Like to Lease  

Our customers lease all kinds of equipment from us. Sometimes, they come to us with a very specific need, for example, if they have been asked to complete a project that requires equipment they don’t own. But at other times, firms are either starting up or expanding and need a wide array of tools. Aside from office furniture, we also offer security equipment and specialized tools for catering businesses and construction companies.

In fact, you can even lease software from us, for example for accounting, advertising, graphic design, or business management. If you’re not sure which items you’d like to lease, make a list of everything you’ll need to run or expand your business. Then, you can decide which pieces of equipment could be leased.

Find a Reputable Business Equipment Leasing Company

There are many lenders out there that offer leases, and some specialty equipment stores have their own programs. But small businesses are almost always best served by an equipment leasing company that offers a broad range of products. Here at Noreast, we can help you find tools, machinery, and software, and you won’t have to deal with each vendor individually.

When you reach out to us, we will assign you a specialist who can take you through the various options. They will discuss the items you’d like to lease and work with you to find the best brands for your business. Then, they can help you compile all the documents you need for your application. Instead of having to deal with various vendors’ requirements and customer service teams, you will always work with the same person when you reach out to us.

Determine the Terms of Your Lease  

Not every lease is right for every business, and we’ve developed a wide range of agreements that can suit various situations. The most common lease term is 36 months, although you might opt for 12 months if you anticipate a change in your business or 60 months if you know you’ll use the piece of equipment for a long time. Depending on your situation, payments will be monthly, quarterly, or even annual.

We also offer step payments, which start out low and then increase over time, and delayed payments, which allow businesses to use the equipment for several months before they start paying. Such arrangements are especially suitable for startups and firms that anticipate steep growth in the near future.

Apply for Your Lease 

With the help of your assigned business equipment leasing professional, you will select the products you need and then complete your application. You will need to state when you’d like to start using your items, where you need them delivered, and what you will do with them. We will perform a credit check and verify your documents to make sure you’ll be able to pay.

It shouldn’t take more than a few days for you to receive an answer from us. We will provide you with a lease agreement, which you can sign and send back to us. We can then provide you with your equipment as soon as you’ve paid the security deposit.

What Are the Advantages of Leasing Equipment? 

Business equipment leasing is straightforward and practical. Whenever you need new furniture, tools, or machinery, you can speak to your experts at Noreast and request a new lease.

Because you don’t need to pay for your items in full upfront when leasing, you will have more capital available to expand your business. What’s more, you may be able to access better equipment than you otherwise could, and you won’t be putting yourself or your firm at risk in the process.

Greater Liquidity 

The main reason why people opt for a lease is that it allows them to control their expenses more easily. When you’re just starting out or you’d like to expand your business, you might not have the necessary capital available to purchase all the equipment you need. With a lease, you can avoid a lengthy fundraising process and grow your operations much more quickly.

Because you and the leasing company will agree on the terms in advance, you’ll know what your future monthly expenses are. This allows you to budget and manage your company’s finances better.

Access to Better Equipment 

If you purchase a piece of equipment, you want to maximize your investment. It can take years for you to make a profit after buying several pieces of heavy machinery. This can be a big problem because businesses and industries change on a regular basis. Over time, you might want to modify the way your company operates, but this is hard to do when you own a lot of expensive equipment.

When you lease, you can avoid this problem because you can give back your equipment once the term is up. That way, your business retains its flexibility. If you decide that you want to go in a different direction, you can quickly and easily purchase new equipment, and if you no longer need an item, you can give it back without losing money.

Lower Risk to You and Your Business 

Business owners who work with a great leasing company such as Noreast don’t run the risk of purchasing substandard equipment. We only work with the best vendors, so you’re sure to be happy with the quality of your items.

What’s more, we will take care of any problems. Companies who lease don’t have to worry about their equipment malfunctioning because the lender is there to assist them. If your machine or software doesn’t live up to your expectations, you can simply get in touch with your account manager. They will help you resolve the issue and make sure that your piece of equipment works well.

Consider Leasing

A wide variety of businesses, from catering firms to building companies, lease their equipment. By working with a reputable business equipment leasing company, you can lower your upfront costs, gain access to the high-quality equipment you need, and lower your company’s risk levels. The process is very easy and only takes a few days, which prevents any delays to your upgrade or expansion.

The best way to get started is to figure out what equipment you need and then discuss your options with our experts. Call us now at Noreast Capital Corporation to find out more about the various leases we offer. We will assign one of our professionals to you and they’ll handle all matters related to your account. That way, we can better tailor our services to your needs, and you can always reach out to the same person whenever you have a question.

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 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 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 their 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.

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.