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A Quick Start Guide to Lease-to-Own Tools Options

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Lease-to-own can be a game-changer for businesses that need tools but want to avoid large upfront costs and rapid depreciation. This approach allows for the use of equipment without outright ownership, helping to maintain cash flow and save money.

Who hasn’t confronted the challenge of needing essential tools for a business but gawked at the high upfront costs? And then there’s the rapid depreciation that follows. Should you invest a lot of money in equipment that will quickly lose its value? If you’re in this position, you can breathe a sigh of relief – there is a solution. Welcome to lease-to-own tools.

At Noreast Capital, we’ve seen firsthand how valuable lease-to-own tools can be for businesses of all shapes and sizes. The advantages are manifold – lower upfront costs, affordable monthly payments, and the chance to upgrade to newer models when the need arises. This approach truly puts you in the driver’s seat.

But what does lease-to-own really mean and how does it work? This quick-start guide is here to help you navigate these questions and more as you consider this practical and economical option.

Infographic explaining the lease-to-own process - lease to own tools infographic infographic-line-3-steps

Understanding Lease-to-Own Tools

Navigating tools and equipment for your small business can be daunting. But understanding the lease-to-own option can make things a lot easier and more cost-effective. Let’s dive in.

What is Lease-to-Own?

Lease-to-own, also known as rent-to-own, is a buying method where you lease a tool for a set period, making regular payments. At the end of the lease term, you have the option to buy the tool, often for a reduced price. If you choose not to buy, you can simply return the tool.

This method allows you to spread out the cost of the tool over a longer period, making it more manageable. It also gives you the chance to try out the tool before committing to purchase.

How Does Lease-to-Own Work?

Lease-to-own works in a simple way. First, you select the tools you need and agree on a lease term, which is often around 36 months, as our expert Vincent Cerniglia from Noreast Capital explains.

You then make regular payments throughout the lease term. These payments contribute towards the cost of the tool. At the end of the term, you can choose to buy the tool, often at a reduced price. The exact cost will be provided in your lease agreement, and you will have a chance to review this before agreeing to the terms.

If you decide not to buy the tool, you can simply return it. This gives you the flexibility to switch tools as your needs change, without having to worry about selling old equipment.

Who Can Benefit from Lease-to-Own Tools?

Lease-to-own is an excellent choice for small business owners who need to use certain tools but want to avoid the high upfront costs and depreciation. It’s also great if you want to try out a tool before committing to buying it.

This option is particularly beneficial if you’re just starting out or are planning to expand your operations in the near future. You can lease a wide variety of tools, including specialized machinery, safety equipment, office furniture, and software.

Lease-to-own tools can benefit businesses in various industries, from construction and landscaping to retail and office settings. Whether you need power tools, lawn and garden tools, or office equipment, lease-to-own can be a practical and economical solution.

The goal is to make your operations smoother and more efficient without burdening your finances. So, consider your needs carefully when choosing the tools to lease.

In the next section, we’ll delve into the advantages of lease-to-own tools and how they can help your business thrive.

Advantages of Lease-to-Own Tools

Choosing to lease-to-own tools offers several significant advantages that can help your business thrive. Here are some key benefits to this approach:

No Upfront Costs

One of the most compelling advantages of lease-to-own tools is the lack of upfront costs. Unlike traditional purchasing methods that require a significant initial investment, lease-to-own options allow you to start using the tools you need without a hefty down payment. This is particularly beneficial for small businesses, allowing you to preserve your capital for other essential business needs. As Vincent Cerniglia from Noreast Capital puts it, “A lease can be the perfect solution because it allows you to open your business without having to do a lot of fundraising first.”

Flexibility in Payments

Lease-to-own tools offer unparalleled flexibility in payments. Traditional loans often have rigid repayment terms, but with lease-to-own, you have the chance to spread the purchase price out with flexible payment options. This allows you to manage your cash flow better and adapt to any changes in your financial situation. Plus, with the early purchase option in less than 90 days, you can save money on the total cost of your rental, only paying a small markup and a one-time fee.

Access to High-Quality Tools

Access to high-quality tools is another significant advantage of lease-to-own options. Often, the high cost of new, top-of-the-line tools can be prohibitive for small businesses. However, lease-to-own programs provide access to such tools without the need for a large investment. This means you can use the best tools in the industry to deliver superior results, leading to improved business outcomes.

No Credit Checks Required

Perhaps one of the most appealing aspects of lease-to-own tools is the absence of traditional credit checks. This makes it an excellent option for those with less than stellar credit scores. As our research from rtbshopper.com indicates, “Because there’s no credit needed, your credit score doesn’t matter! You can use rent to own tools almost immediately after approval because there’s only a $50 down payment required upfront.”

In conclusion, lease-to-own tools offer a practical and affordable way for businesses to equip themselves with the tools they need without the high upfront costs and rigid payment terms associated with traditional purchasing methods. It’s a smart choice for businesses looking to maintain their cash flow and access high-quality tools regardless of their credit history.

In the next section, we’ll guide you on how to choose the right lease-to-own tools that best suit your business needs.

How to Choose the Right Lease-to-Own Tools

Choosing the right tools and the best lease-to-own plan can seem daunting, but don’t worry. Our expert, Vincent Cerniglia at Noreast Capital, has broken down the process into four simple steps.

Assess Your Tool Needs

Firstly, understand what tools are crucial for your business operations. Consider the tasks you perform regularly and identify the tools that would make these tasks easier and more efficient. This could range from power tools for a construction business to specific software for a tech startup.

Compare Brands and Models

Once you’ve identified your tool needs, it’s time to compare different brands and models. Different tools come with varying features, and understand which features are beneficial for your business. For instance, if you’re looking at power tools, you might compare brands like Milwaukee for their durability and performance.

Consider the Lease Terms

Lease terms vary, and understanding them is vital to avoid potential pitfalls. As per our experts at Noreast Capital, study the entire contract carefully, including every clause and definition. Mark parts needing clarification and ask questions in advance to avoid future headaches and excess charges down the line. This is in line with the advice given on Reddit’s LifeProTips as well.

Also, consider the flexibility of lease terms. Depending on your business dynamics, you might want to opt for a lease that allows early termination without hefty penalties, or even one that includes maintenance costs within your monthly fee.

Evaluate the Total Cost

Lastly, evaluate the total cost of the lease-to-own agreement. Some offers may seem attractive with low monthly payments, but the total cost over the lease period may turn out to be higher than anticipated. So, calculate the total payments over the lease period and any potential end-of-lease costs. Also, check the early buyout price. For instance, some lease agreements offer a one-time payment of 50% of your remaining ownership balance after a certain period.

Choosing the right lease-to-own tools involves understanding your tool needs, comparing brands and models, considering lease terms, and evaluating the total cost. By following these steps, you can ensure that you are making a financially sound decision that will benefit your business in the long run.

In the next section, we’ll look at some popular tools available for lease-to-own.

Popular Tools Available for Lease-to-Own

Now that you have a better understanding of how to choose the right lease-to-own tools for your needs, let’s explore some of the popular tools available for lease-to-own.

Power Tools

Whether you’re a contractor, woodworker, or just a DIY enthusiast, high-quality power tools are essential for a variety of tasks. Unfortunately, these tools can be quite expensive if you’re planning to buy them outright. Lease-to-own options allow you to use top-tier power tools, like the DEWALT 20V MAX Power Tool Combo Kit or the Milwaukee M18 18-Volt Lithium-Ion Cordless Combo Tool Kit, without a large upfront payment. These tools are perfect for a variety of tasks, from construction to home improvement projects.
Power Tools - lease to own tools

Tool Chests and Cabinets

Tool chests and cabinets are key for organizing and storing your tools safely. By leasing to own, you can get your hands on heavy-duty tool chests like the 18-Drawer Mobile Workbench with Adjustable Height Solid Wood Top, without the stress of the full upfront cost. These tool storage solutions are perfect for workshops, garages, and other workspaces.
Tool Chests and Cabinets - lease to own tools

Air Compressors

Air compressors are a vital piece of equipment in many industries, providing power for a variety of tools. The California Air Tools CAT-4620AC Ultra Quiet & Oil-Free Air Compressor or the Craftsman Air Compressor are available for lease-to-own. These compressors are designed for high performance and durability, making them a great investment for your business. Air Compressors - lease to own tools

Lawn and Garden Tools

For businesses in the landscaping and gardening sector, high-quality lawn and garden tools are a must. Leasing to own can help you acquire these tools without the high upfront cost. From lawn mowers to hedge trimmers, leaf blowers, and more, there is a wide range of lawn and garden tools available for lease-to-own.
Lawn and Garden Tools - lease to own tools

At Noreast Capital, we pride ourselves on offering a diverse selection of tools for lease-to-own. We understand that every business is unique, and we work closely with our clients to ensure they get exactly what they need. To learn more about the lease-to-own options we offer, get in touch with us.

Navigating Lease-to-Own Agreements

When considering lease-to-own tools, understanding the terms of your agreement is crucial. At Noreast Capital, we believe in transparency and empowering our clients with the knowledge they need to make informed decisions.

Understanding the Agreement Terms

The first step in navigating lease-to-own agreements is to thoroughly review the contract. Vincent Cerniglia, our expert at Noreast Capital, emphasizes the importance of carefully reading lease agreements before signing. This includes going over every clause and definition to ensure you’re aware of your responsibilities, deadlines, and any additional fees.

Don’t rush the process. Take your time to digest the information and research any unclear areas. Mark parts that need clarification and ask questions in advance. By doing this, you can foresee and prevent potential complications and extra costs down the line.

Early Purchase Options

Another important aspect to consider is the early purchase option. This allows you to buy out the remaining balance for a fee but could save you money on future interest rates. Ensure this choice is clarified upfront in your agreement.

For instance, one of the models we use at Noreast Capital is the “early buyout price” where, after 100 days, you can buyout with a one-time payment of 50% of your remaining ownership balance. This option can notably impact your long-term expenses, offering opportunities for affordability.

What Happens at the End of the Lease?

Lastly, it’s crucial to understand what happens at the end of your lease term. Often, lease agreements offer a predetermined residual value, which is an estimate of the gear’s value at the end of the contract. This amount can impact your long-term expenses since you may choose to purchase the equipment outright using this residual value.

However, it’s important to research independent used equipment price forecasts within your industry to ensure the pre-set residual values are accurate. Inaccuracies can result in higher monthly costs or missed opportunities if a buyout makes sense.

Navigating lease-to-own agreements should be a careful and thoughtful process. At Noreast Capital, we’re here to guide you every step of the way. Feel free to reach out to us with any questions or concerns. We’re committed to helping your business thrive.

Conclusion: Is Lease-to-Own Right for You?

After exploring the ins and outs of lease-to-own tools, it’s now time to evaluate if this option is the right fit for your business. The decision ultimately depends on your unique needs, circumstances, and long-term plans.

Increased Flexibility is one of the main advantages of lease-to-own tools. As your business grows and evolves, so do your tool requirements. With lease-to-own, you don’t need to be stuck with equipment that no longer serves your needs. You can easily switch to different tools at the end of your lease term, adapting seamlessly to the ever-changing business landscape.

More Predictability in financial planning is another major benefit. The regular lease payments can be easier to manage than large upfront costs, allowing for better budgeting and financial control. Plus, with some lease agreements, maintenance costs are included, eliminating unexpected repair expenses.

If you’re a small business owner who values flexibility and predictable expenses, lease-to-own might be a great choice. It’s also a viable option if you’re just starting out, or if your credit history isn’t stellar, since some lease-to-own options don’t require credit checks.

However, it’s crucial to understand the agreement terms and evaluate the total cost. Lease-to-own can sometimes be more expensive in the long run than outright purchase, so you need to consider your financial situation and future plans carefully.

At Noreast Capital, we offer a variety of lease-to-own options tailored to meet your specific needs. Our team of experts, including Vincent Cerniglia, is ready to guide you through the process. Whether you’re interested in power tools, lawn and garden tools, or any other equipment, we’re here to help you find the best lease-to-own solution.

To sum it up, lease-to-own tools can offer a flexible, affordable way to equip your business with high-quality tools, without the hefty upfront costs or the risks of obsolescence. It’s a strategy that can help you conserve capital, retain flexibility, and adapt quickly to market conditions.

Ready to explore lease-to-own tools options? Contact us at Noreast Capital for more information or to start your application process.

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