Your business needs software to run efficiently. If you’re looking for the best options out there, software leasing might be exactly what you need. There are plenty of benefits to leasing software, especially as a new business.
Why Software Leasing Is a Lifesaver for New Businesses
Even in industries that provide hands-on work, software provides important administrative assistance, keeps information organized, and ensures that everything that needs to get done is getting done on time. So that means that buying software is a necessary part of running a business, right?
Not necessarily. Buying software can be a huge expense, but instead of spending more money than you’d like to on the software you need, you might want to consider leasing it, especially if your business is brand-new.
What Exactly Is Software Leasing?
Just like you would lease anything else, leasing software means getting the software from a lender. The lender finances the software while the business uses it for a small monthly fee. This offers new businesses the opportunity to get the software they need without needing to spend the money to buy it themselves.
What Are the Benefits of Leasing Software?
Better Cash Flow
The first few years can be tough financially for new businesses, so finding ways to improve your cash flow is important. When you lease software instead of buying it outright, you’ll find it much easier to avoid strains on your budget. You’ll only need to pay a small monthly fee for the software, while the lender will shoulder the full cost.
The software that you use initially for your business is going to be a huge help in getting your business up and running. But what about further down the line? At a certain point, your business’s needs are likely to change. So must your software.
But you might hesitate to switch up your software if you’ve paid upfront and don’t want to have to spend any more money. This is another major benefit of leasing instead of buying. It will be much easier to switch to different software, meaning you can always keep up with your business and customer needs.
No Worries About Obsolescence
One of the major downsides of working with digital technology is that there are constant upgrades and updates. This means that the software that you use can become obsolete pretty quickly. When you buy instead of lease, it can be hard financially to keep up with all the latest upgrades.
You’ll have a much easier time when you lease your software. Don’t worry about getting stuck with obsolete software because you can’t afford anything better. With leasing, it’ll be easy to switch to the latest software and keep up with the competition.
Lock in the Price
One of the biggest issues that businesses, especially brand-new businesses, need to face in today’s world is inflation. Prices are continuously going up—and by significant amounts, too. You might end up paying far more if you buy software later than if you buy it now.
This issue can quickly get complicated for new businesses who require software to function but don’t want to have to worry about paying a lot of money down the line for any upgrades you might need. With leasing, the price gets locked in, so you won’t need to worry about significant increases in cost.
Improve Your Business’s Credit
Your business is likely going to need to lease things aside from just the software you use. This is where your business’s credit score comes into play. Keeping a high score so you can get the best leasing deals and contracts will help your business thrive.
When you lease your software and make your payments on time, you are actively improving your credit score. This means that when you need to lease other equipment for your business, you’ll have an easier time getting the best rates.
No Down Payment Required
When you’re leasing certain kinds of equipment, or when you lease from certain lenders, the lender will require a down payment. Down payments, while they may not be the entire cost of the software or equipment that you need, can still put a financial strain on your new business.
If you decide to take advantage of our software leasing options, you won’t need to worry about putting down a down payment. You can finance 100% of the equipment and software that you’re leasing, and you may even be able to include costs for things like upgrades and installation.
Get What You Need Quickly
When you lease equipment and software, you likely don’t want to have to wait long to be able to use the products you’re leasing. New businesses need to be able to move quickly and gain an advantage over their competitors.
Unfortunately, some leasing companies or banks can take weeks to approve a lease. With us, however, you won’t have to worry about waiting that long. Approval will take just a few hours, so you can get what you need and start using it right away.
Having to pay taxes can put a big strain on your budget, even when you’re prepared to pay them. Finding ways to save money when it comes to taxes can help you set your business up for financial success.
In the case of most leases, you can deduct the monthly payments. Because the amount you can deduct changes annually, you should make sure that you work with a financial advisor during tax season.
A Customized Plan for You
We know that there’s no one-size-fits-all solution for any business. Your software needs are going to be different from your competitors’ needs. That means that your leasing needs are going to be different too. You need to make sure that you’re getting what your business needs to thrive.
When you lease from us, we’ll make sure that you get the customized leasing plan you need. You’ll easily be able to choose the terms of your lease, as well as what your payment plan should look like. Extend the terms if you need, and upgrade the software and equipment you’re using as necessary.
How to Choose the Right Leasing Company
What Kind of Software Do They Offer?
The most obvious factor to consider is the software that your business needs. We can provide businesses with all types of software. Whether you’re looking for advertising software, point of sale software, or accounting software, we will make sure that your business gets what it needs.
What Is the Cost?
You want to make sure that you are getting software that is effective for your business while also being affordable. That’s why cost is an important factor to consider when you’re looking into leasing software.
We want to make sure that all of our leasing options will provide you with what your business needs while staying affordable. We know that costs can add up quickly for new businesses, so we’ll ensure that our options are right for you.
What Kinds of Leases Are Available?
Different businesses will require different things from their software leases. Some businesses may prefer a shorter term, while others will want to buy the software out at the end of the lease.
When you lease your software from us, we can offer you several different kinds of leases. This includes FMV leases, which are designed to fit with IRS tax guidelines and ensure that you get all the best tax benefits from your lease. We can also offer leasebacks, capital leases, and operating leases.
Who Can Get a Lease?
Some equipment leasing companies may have certain requirements for businesses that choose to lease from them. You should make sure to ask what these requirements may be so you’ll know if this is the right company for you. For instance, many companies will prefer to lease to established businesses.
We will lease to both established and brand-new businesses. For new businesses, you may need to prove that the owners are in good financial health. You may also be asked to write up a business plan and provide other information to show that you are able to fulfill your end of the leasing contract.
What Are Your Options at the End of the Lease?
The lease itself isn’t the only factor to consider when you’re looking to rent software. You should also be aware of what will happen once your lease is done.
We’ll provide you with several different options once your lease is complete. You can return the software you are using without any further obligations on your end. You may also choose to buy out the software, or you can upgrade to different software among other options.
Starting a new business is an exciting venture, but there are a lot of costs that come along with it. You can save money by leasing software instead of buying it. Ready to learn more about how we can help you? Call us today at Noreast Capital.