There are so many hidden advantages of leasing equipment for your business! It’s an especially excellent option for businesses that want to grow their company but don’t have the capital. In addition, it allows companies to make investments in the future without spending all of their money at once.
You can use leasing as a tool to help you achieve all your goals and dreams for the business, no matter what they are! Here are some of the most impactful ways that leasing can boost your business:
What Are the Advantages of Leasing Equipment for Your Business?
Lower Cost Up Front
Leasing typically offers upfront cost savings since you’re able to spread the cost of equipment over a specified term, and there are no down payments required. Fewer upfront costs result in additional cash flow when compared with traditional financing methods. In addition, when you choose to lease, your business doesn’t have to use up existing lines of credit or bump up credit limits.
Many businesses are able to pay for their equipment using lease financing before they would have been able to purchase it outright with cash or other forms of credit. Lease your equipment to save money on business expenditures (bank lines) for day-to-day operations, growth, or unforeseen business costs.
Get Equipment Faster
Getting a bank loan to purchase equipment can take weeks before you get approval. But leasing from us is lightning fast! You need only use our online credit application tool to request financing, and you’ll receive a reply within four hours – sometimes as quickly as 30 minutes!
Our documentation turnaround time is similarly fast; we can email, fax, or courier the documents overnight. Often, we can have everything set up within 24 hours. And the sooner you get approved and signed, the sooner you can get the equipment you need to make your business grow and thrive.
Flexible Payment Terms
Leasing gives you the ability to make low monthly payments as well as options for buy-out or end-of-term purchases. Also, we can provide your business with excellent credit terms and flexible payment arrangements that allow you to get the low monthly lease payments you need.
You can easily spread the cost of the equipment out over an extended period of time, so you’re never spending more than you’re making. Furthermore, we offer a selection of unique leasing plans tailored to your business needs. Some examples include:
$1 Buyout
Choose this plan when you’re completely certain you will want to buy out the equipment at the end of the lease. When your term is up, you purchase the equipment for a dollar.
Seasonal Lease
If you have a seasonal business that’s closed for certain months during the year, this is a great option for you. This way, you only make payments during the months you’re open for business.
Deferred Payment
If you need the extra time, we can accommodate you. With this plan, you only begin making lease payments 2-3 months after you obtain the equipment.
Fair Market Value
This is a fantastic, flexible option for businesses that want to keep their options open! At the end of the lease term, you can choose to extend the lease, return the equipment, or purchase it at its fair market value. We even offer financing options for the last choice.
Consistent Monthly Payments
Leasing enables you to use only the equipment you need within a budget that works for you. Once you’ve agreed to the best leasing option for your business, you pay the same rate every month for the duration of your term. Even if there is a sudden increase in interest rates, your payment stays the same. Predictable monthly payments can be a lifesaver for your business!
Save at Tax Time
Lease financing may help your company save money in taxes. Often, lease payments are 100% deductible, as it’s considered an operations expense. For example, section 179 of the IRS Tax Code enables a business to subtract the total price of certain equipment the year that it is purchased.
Some equipment may not qualify, but even then, you might be able to claim a depreciation deduction. It all depends on the business and equipment, so always ensure you check with your tax advisor to determine which savings apply to you.
Less Risk
Buying equipment outright can be risky, even if you have the capital. Marketplaces can change overnight due to the fluctuations in the economy and other unpredictable factors. Just look at how the pandemic has affected businesses!
But restaurant equipment leasing means you don’t have to worry about losing your investment. And if anything goes wrong, you’re only responsible for the lease payments, not the depreciation of the equipment itself. Leasing offers 100% financing, meaning your business won’t be responsible for any of the capital upfront. If something goes awry during the lease term—like a natural disaster—you can usually return the equipment without penalty.
No Maintenance Costs
Most leases include scheduled maintenance and regular inspections, reducing the amount of equipment downtime your company experiences. If something breaks from regular use, you don’t own it, so you don’t have to pay anything for someone to come and repair it. Likewise, you don’t have to waste valuable time and resources looking for a repair company or replacement material.
Stay Ahead of Your Competition
Perhaps one of the most significant advantages of leasing equipment is that you can affordably obtain all the latest, cutting-edge equipment that enables your business to run at peak efficiency. That means you can keep up with competitors and deliver exceptional customer service that keeps your clients coming back for more.
For example, installing the latest office telephone system that can accommodate a higher volume of calls means you can deliver on projects more quickly and efficiently than the competition. That kind of service gives you an edge, even if your competitors are a bigger company.
Escape Obsolete Equipment
If you work with technology or equipment that needs regular updating, leases work to your advantage – you’ll never be stuck with old equipment because you don’t own it! If your equipment becomes obsolete or no longer functions as it should, leasing gives you an easy way out to avoid costly repairs or replacement costs while keeping up with current technology. Leasing offers the flexibility to make confident, informed decisions on what updates are needed without the long-term commitment.
Improve Safety and Security
Businesses that own their equipment will naturally try to get the most mileage possible before replacing it. But depending on outdated equipment can be detrimental to the business’s safety and security. For example, old computers can pose a security risk if not replaced or adequately maintained.
Similarly, old vehicles can break down at the worst possible time. Electrical equipment could break and cause a fire. But by leasing your equipment, you never run the risk of such problems because you’ll never need to hold onto old equipment in an attempt to save money.
Improve Your Finance Options
Leasing conserves your capital. Instead of being treated as long-term debt, lease payments are reflected as a business cost. That means less debt on your balance sheet, opening you up to better financing options that support your business. It also preserves your lines of credit so you can save that reserve for emergencies or other projects. That extra capital gives you a cushion to operate on.
Product and Leasing Expertise
Another benefit to leasing the equipment is your leasing company has comprehensive expertise on the product you’re using. That means that we can not only hook you up with the best leasing solution for your business, but we will arm you with the optimal equipment and show you how to use it most effectively.
There’s no need to hire an in-house professional to set up the tools or train your staff. For example, if you’re renting network equipment, you would likely need to hire an IT person to set it up and maintain it. But when you’re leasing the equipment, we take care of that for you!
Flexibility for Your Business to Evolve
Because of the transient nature of leasing, you have the freedom to plan and change your equipment needs as your business grows. For example, if you’re planning an expansion but don’t know how big a company you’ll be in five years, leasing can help protect your cash flow while still facilitating growth. Then when business is booming, and you need to scale your equipment needs, leasing easily allows you to upgrade your assets.
The numerous advantages of leasing equipment make it a no-brainer for many businesses. And with so many flexible lease options at your disposal, you can get the gear you need on just about any budget or timeline.
Whether you’re looking for short-term leases for office equipment or long-term leases for restaurant products, there’s something for everyone! So if you’re ready to get the products you need to accelerate your business to new heights, contact us at Noreast Capital today!
