Starting and growing a small business means more than finding a property and sticking an “Open” sign in the window; it also means buying or leasing equipment for your business. A commercial lease on capital equipment can be a lifesaver for startup and small businesses. Business equipment leasing can reduce your initial costs for acquisitions and can increase your cash flow. Equipment leasing is available via general leasing vendors and other companies, such as those offering computer leasing, specialized leasing or industry-specific equipment leasing. And with flexible lease financing terms, you can secure payment plans, upgrade options and buyout options that work for you.
Here are the top considerations for leasing equipment for your small business:
1. Business equipment leasing gives you immediate access to the capital equipment you need with payments to fit your budget.
2. Computer leasing is a great way to take advantage of the newest technology, while transferring ownership risk to the equipment-leasing vendor.
3.Specialized leasing vendors offer all types of capital equipment — from MRI machines to industrial machinery.
Determine the type of lease equipment you need
Business equipment leasing offers reasonable prices on a vast array of equipment for all kinds of businesses. Whether you need typical office furniture and equipment, industrial equipment, medical equipment or computer and IT equipment, equipment leasing is an option.
Look for IT and computer leasing for high-tech, lower-cost solutions
Because computers become obsolete, so quickly, computer leasing is a smart way to stay on top of tech trends while saving money. Don't forget to check into software offered by many computer leasing vendors, too.
Get the best lease financing terms on your commercial lease agreement
Lease financing terms and rates vary and include operating leases and capital leases. With an operating lease, you return equipment at the end of the lease and have no option to buy. A capital lease typically gives you an option to buy at the end of the lease. Know which lease financing terms you want before signing a commercial lease agreement.
Find specialized leasing equipment vendors to increase your profits
Whether you need medical, industrial, restaurant or some other type of equipment, you can find it through specialized leasing vendors.
Take advantage of the best deals in low-cost end-of-leasing equipment options
Many companies offer end-of-lease equipment options that cost you as low as $1.00; while others may cost 10 percent of the item's price, fair market value, or another standard price. Check into these options before you sign the commercial lease agreement so you can plan accordingly.
- Always read the fine print before signing a commercial lease agreement.
- Some manufacturers will lease equipment directly to your company, which may save money by cutting out the middleman.
- A commercial lease agreement typically runs from 12-60 months, with some exceptions.
- Equipment leasing and specialized leasing are great solutions for any commercial equipment that will depreciate over time.
- Only lease equipment you really need, or your profits will be lost on equipment leasing expenses.
- Look into capital lease financing if you want to keep the business equipment. With a capital lease, you can treat the equipment as depreciable assets for tax purposes.