Equipment Leasing & Equipment Financing
With equipment leasing, you have the ability to keep your working capital in the positive while getting the items necessary to improve the overall performance of your business.
Generally speaking, leasing equipment is the same as leasing a vehicle or any other item.
Steps to Equipment Leasing
- Find a dealer in your area that offers the type of equipment that you are interested in leasing.
- Make a final determination on the type of equipment that you want to finance.
- Apply for financing.
At this point, information regarding your business, such as credit score and annual income, will be passed along to a financial institution.
What type of interest rate can my business expect? Like any lease or purchase loan, your rate will be based on the credit worthiness of the business and/or owner – the higher your score the lower the rate.
While some transactions are for a couple thousand dollars, others easily eclipse $100k.
Common types of Equipment for Lease
There are many types of equipment that are leased to businesses on a regular basis, including:
- Agricultural
- Automotive
- Business
- Construction
- Dry cleaning
- Industrial
- Medical
- Office
- Printing
- Restaurant
- Software
- Telecom
Why Equipment Leasing?
Before you get involved with leasing equipment for your business it is important to become familiar with the benefits and advantages of doing so.
The primary benefit of leasing, as opposed to buying, is the price. Lower payments mean that you can keep more money in your business.
Additionally, when you lease equipment you are doing so for a specified period of time. Once this period comes to an end, you have several options:
- Turn the equipment in to the dealer and walk away.
- Purchase the equipment.
- Turn in the old equipment and opt for a newer option.
The equipment leasing process can be simple and straight forward if you are informed of how the industry works and are aware of what you need.
