In every aspect of running a business, there are costs. Especially when you’re starting a new business, those costs add up quickly!
You can make costs more manageable without using up your line of credit or taking out another bank loan. Lease financing is an accessible option with many benefits.
WHAT CAN BE FINANCED THROUGH LEASING?
Lease financing is available for anything your business needs to operate – including signage! Machinery, office equipment (including phone and computer systems), racking, and much more can be leased.
5 REASONS TO USE LEASE FINANCING
1. KEEP YOUR CASH & CREDIT LINES
Leasing equipment and/or signage allows you to keep your cash and lines of credit for their intended purpose. Have them available for operating expenses like stocking inventory, raw materials costs, or unexpected expenses.
2. EASIER BUDGETING & CASH FLOW
Fixed monthly lease payments make planning easier. You can generate cash flow by making use of your equipment immediately. Your cost-to-income ratio is more likely balanced with a lease rather than a large up-front non-leased equipment purchase.
3. INCREASED PRODUCTION & PROFIT
Lease financing enables you to upgrade and expand the service your business can offer, allowing for greater profit.
- Outdated or worn-out equipment can greatly diminish your ability to produce the needs of your clientele efficiently and profitably.
- Constant or repeated downtime for repairs can cost you greatly and potential clients may be swayed by updated technology.
- Weathered signage can decrease its effectiveness in bringing in customers and helping you make sales.
- If you decide to sell your company in the future, updated equipment increases the value of your company.
4. TAX ADVANTAGES
A lease payment is usually treated as an expense rather than a depreciating asset. This way, you capture the depreciation back to your company more quickly, putting your money back into your company where it should be. Talk to your accountant about how this might work for your business.
5. INCREASED BUYING POWER
Paying cash for the total cost of your equipment or signage is not always possible or the best solution. With the smaller periodic payment of a lease, you increase your purchasing power.
Sometimes that one piece of equipment can mean all the difference to your company’s future. Could you capture that new client? Fill that order faster with less labor costs? Get the equipment that you really need.
You may be able to add extra features or accessories to your equipment for a slight increase in your lease payments rather than letting opportunity pass you by while you wait to save up the cash.
EQUIPMENT LEASING VS. BANK LOANS & CREDIT CARDS
Credit cards and lines of credit have their place. But there are things to consider:
A line of credit is actually a “demand loan”. This entitles the bank to reduce or revoke the loan at any time. Interest rates are also subject to fluctuations.
Credit cards are typically a very high-interest form of financing and not recommended unless you’re able to pay off the balance every month.
LEASE 1 FINANCIAL
If your business needs it, we can lease it!
Lease 1 Financial provides accessible, understandable and trustworthy equipment lease financing and vehicle leasing. Providing unmatched value, personal and professional service, deep expertise, and shared values, Lease 1 Financial is in the business of helping your business thrive.
Contact Lease 1 Financial for more information about how lease financing can work for you.