In today’s tough economic environment, many start up businesses are turning to a leasing and financing company when they need new equipment to perform their business. When entrepreneurs begin a new endeavor, there are numerous expenses associated with starting an organization, such as leasing or purchasing commercial space, deposits required for utilities, telephone and online sites, furnishings, business licenses, supplies, advertising and employee salaries.
These expenses, along with a plethora of unforeseen costs, require a great deal of capital outlay, sometimes not leaving much profit the business coffers to cover the expense of necessary equipment. When additional capital is needed, entrepreneurs must turn to other options to get the equipment they want.
When expenses run over budget but equipment continues to be needed to run the business enterprise, equipment leasing or equipment financing could be of great appeal. Equipment leasing is an excellent way for a start up company to get the equipment it needs without having to pay a large amount of cash out of pocket. An added benefit to leasing is that maintenance of the gear is often contained in the monthly cost, eliminating the need to pay for another maintenance contract on the equipment. Leasing is also an excellent option for equipment that’s needed only for some time, as leases can be negotiated for variable amounts of time, with both short and long-term leases often available. In the event that a business does not succeed, leases offer an option for returning the equipment without detrimental effect on the company’s credit rating.
When equipment will undoubtedly be needed longterm or permanently, equipment financing is usually a more prudent option than leasing because the payments will be over an interval of a few years instead of ongoing. This is also an excellent option for companies that have on site maintenance personnel who is able to repair or maintain the equipment. Financing allows an organization to get needed equipment while coming out of pocket with just a small down payment.
yoursite.com is also an excellent option when a company experiences fast growth and has an immediate need for more equipment but does not have the necessary capital for purchasing the equipment outright. When a company finances the gear, it becomes a secured asset of the company, adding to the company’s net worth. Financing equipment also has a benefit to the company in that the interest paid on the loan is often tax deductible.