According to a recent survey by the Equipment Leasing Association, economic activity for leasing is on the rise. Simply put, more businesses are leasing the equipment they need for their offices and facilities.

It’s hardly a surprising trend: For many small businesses, leasing provides a cost-effective alternative to buying their equipment outright. In fact, today it’s possible for a small business to lease almost everything it needs, from computers to copiers to office furniture.

Leasing equipment will provide businesses with many benefits, such as no up-front costs and ownership risk. Obtaining equipment through a lease is one of the most efficient ways for businesses to stay at the top of the industry’s development curve. With the constant development of new equipment and technology, leasing equipment is substantially less expensive and allows you to keep your technology current.

Here are some of the advantages to leasing:

1. Conserve and Control Cash. Equipment leasing saves your working capital (bank lines) for day-to-day business expenses, business expansions, or unexpected business-related expenses. In addition to saving your working capital, with a lease you have a pre-determined monthly line item, which can help you budget more effectively. With predictable monthly expenses you can develop long-term plans for your business with confidence and get your business set up with the equipment you need, while keeping your cash flow available for other expenditures.

2. Upgrade outdated Equipment. Depending on your business type, equipment leasing can help you stay on top of the latest advances in equipment and technology. How long do you plan to keep the asset? If you’re only planning to keep it for the short term, you may find that leasing is a better alternative than buying it and trying to resell it when you no longer need it. You can also determine the length of your lease, so if you work with technology that changes rapidly, you can take on a short lease to ensure you’re always at the cutting edge in your industry.

3. Tax Benefits. Lease financing presents your business with potential tax benefits. In many cases, leasing not only provides businesses with a full deduction of lease payments against current earnings, but also preserves working capital that you wouldn’t have access to if you had to purchase your equipment up front. It’s always a great idea to check with your tax advisor to determine the benefits for your business.

4. More Attractive Balance Sheet. Monthly lease payments are viewed as a business expense instead of long-term debt. Having little debt on your balance sheet helps you secure financing to fund your business. And who doesn’t love a sexy balance sheet?

Easier financing: If you have some strikes against you on your personal or business credit history, it’s usually easier to get better financing terms with leasing than if you were trying to buy the equipment.
Support: Leasing agreements usually come with some sort of technical support from the leasing company. When you’re in a jam, in-person service and toll-free support numbers can be lifesavers.

Flexible terms: Leasing companies usually offer terms to fit your needs and budget, such as closed-end leases, open-end leases, balloon payments, and more. Be aware of all the risks that some of the terms could involve before you sign on the dotted line.

We find many new business owners believe they need a loan to purchase needed business equipment. The fact is new businesses will find it near impossible to obtain a loan. To obtain a loan, you’ll need stellar credit, excellent cash flow with verifiable business financials, and 2+ years in business.

We will conduct a free one on one funding consultation. We will determine what lender would be best for your funding request. We will contact that lender on your behalf. If they indicate they can fund you, we will introduce you. This way, you are only speaking with lenders that are familiar with your funding request and already indicated they can fund you.

Make you appointment here:
https://calendly.com/integrityfundingconsultants