Guide to Equipment Leasing
Equipment leasing – big decisions for small business owners
The small business owner has to be a jack of all trades – and master of many of them. Managing cashflow is one of those essential skills and when it comes to purchasing expensive assets, there are serious decisions to be made. A major outlay will have a direct impact on your cashflow – but maybe there’s a different way. Have you considered leasing through a small business expert like GRENKE?
Buying and maintaining equipment is expensive and there’s always the fear of hidden costs or that it will become obsolete when a newer version comes out. Leasing can protect you from those situations.
Leasing offers advantages like regular set monthly payments spread over a long period of time, rather than a once off outlay. Many commercial equipment leases also include service agreements or options which offers peace of mind and security. At the end of the lease, you can choose either to renew the lease, return the asset or buy it. Often there’s an option to upgrade the piece of equipment during the lifetime of the lease. That makes leasing a good choice for equipment that regularly needs upgrading.
You do have to pay interest on a lease so this needs to be taken into consideration. Leasing can be more expensive than buying equipment outright – but the spread-out payments can compensate for that by helping your cashflow.
Equipment leasing can be used for all sorts of expensive equipment which your business needs – machinery, computers or other technology for example.
When you’re faced with a major purchasing decision, always ask yourself if you really have to buy that piece of equipment outright. Maybe you don’t, maybe there’s a better choice, one that a financial solutions provider like GRENKE can help you make.