It can be the perfect way to free up more money. Leasing opens up extra capital for your business. A great option if you’re expanding fast… or if banks’ restrictions are tight. Look:
This means you can offer better service… better quality of work… less down time… lower repair costs… increased productivity… and so, increased revenues and profits.
You make bank loan payments from after-tax revenues. Lease payments are expensed. Besides, the extra money you make from using the equipment helps pay for the equipment!
In most cases, only one or two advance payments are needed to initiate a lease.
Financing the equipment for your new enterprise frees up valuable working capital and helps establish your credit.
By locking in today’s rates, your payments stay the same even though prices increase!
Because you’ve financed your equipment, you’re not hitting up the bank for constant short-term loans… so you still have that bank credit available for things like financing inventory, accounts receivable and other short-term needs.
Ew can roll the extra costs involved in buying equipment (delivery and installation charges, software, etc.) into the life of the lease, amortized with small payments over time!
If you have outstanding bank loans or lines of credit, many banks place tough restrictions on them as a condition of approving your new loan.