Author Box
Articles Categories
All Categories
Articles Resources

The Advantages Of Leasing Programs For Business Equipment Needs

February 29, 2012 | Comments: 0 | Views: 149

Many businesses find that they need to set aside funds for purchasing equipment as they grow. However, it can be difficult to make such allowances, especially in these economic times. Why put the operating budget in the red by taking on extra financing, when it is much more advantageous to secure one of the many leasing programs offered by equipment brokers to get the equipment you need today?

Financing vs. Leasing

For established businesses, those that have been operating successfully for at least two years, getting financing to make equipment purchases can be a difficult prospect to face. With rising interest rates, banks and loan companies can require additional collateral to be signed over in order to secure the loan, or even enforce such loans on a short-term note that will have to be paid off with fees in less time than the business may be able to afford.

Leasing programs, on the other hand, are much more flexible and can be customized to the business' exact needs. Not all equipment purchases are meant to be for the long term, and may only be needed for a limited amount of time. Financing through loan agencies under these circumstances would be less than efficient, because once the loan is paid, you are still the owner of the equipment, and reselling it once it is no longer needed will not pay back the initial investment. With equipment leasing, you can easily add in clauses that cover the return of unneeded equipment, sometimes at a financial bonus to your business.

Types of Equipment Leasing Available

For those seeking to only gain the use of needed equipment in the short term, there are two programs that can be used to their advantage. The first, known as an operating lease, allows a business to lease needed equipment for the exact length of time that they need it, at an affordable rate. Once it is no longer needed, it can be easily returned back to the leasing agent for a small fee. The second, known as a master lease, allows the business to try out equipment they were thinking of purchasing for a specified period of time, without any transference of ownership. At the end of the initial lease, they have the option to extend that lease, without having to renegotiate.

For those interested in actually purchasing the equipment but do not want to tie up operating capital in commercial financing, the capital lease is probably the best leasing option available. The equipment is purchased through a leasing agreement with affordable monthly payments and at the end of the agreement, one final payment secures the property and transfers ownership rights. However, for the purposes of taxes, the equipment is considered to have already been purchased during that fiscal year and any tax breaks for making such a purchase can be applied, even though the final payment on the equipment may be a year or more away.

A Lease That Actually Pays You Money

For business owners looking to the future, they may have already earmarked equipment that they would like to sell but cannot do so until operations surrounding them have been concluded. This would normally mean taking out a loan in order to finance the startup of the future operation, including purchasing new equipment. With a sale and lease back type of leasing programs, business owners can sell future unwanted equipment to a broker, for a negotiated full purchase price, and then temporarily lease it back at an affordable rate. This gives them the use of the equipment while they need it, plus the cash flow they need to start the new operation. At the end of the term, the broker takes possession of the sold equipment.

Want to know more about the various leasing programs available to business owners? The experts at Sun South Lease have been helping businesses achieve success through many such programs. Call them today for a full consultation. Also check out our new page on Equipment Leasing Programs.

Source: EzineArticles
Was this Helpful ?

Rate this Article

Article Tags:

Leasing Programs


Business Equipment Needs


Business Equipment


Equipment Leasing


Purchasing Equipment

The 3 Month Payday Loans is most suitable options for the people who do not possess assets. There are a variety of loan options for the people who are willing to pledge assets against the cash

By: Cameron white l Finance > Personal Finance l July 09, 2013 lViews: 560

For many people, bankruptcy can make their world fall apart. The apparent loss of reputation coupled with the inability to take financial decisions can deter anyone from thinking clearly. But all is

By: noragwilt l Finance > Bankruptcy Lawyers l November 18, 2012 lViews: 303

If you are availing payday loans with monthly payments, it is easy for you to obtain quick money from online lending companies.By getting the best deals of loan, you can save money in terms of

By: Malen Cheks l Finance > Loans l November 16, 2012 lViews: 288

Loans online have become the popular source of income and people can make smart decision of taking it.Now, don’t go anywhere and sit in your home silently. Such deals would bring you money without

By: Marsh Jone l Finance > Loans l November 13, 2012 lViews: 288

Loans for the unemployed would let you feel comfortable with your unstable conditions due to jobless period.If you compare the rates of a few lenders, you would definitely get the suitable lender to

By: kelse roy l Finance > Loans l November 13, 2012 lViews: 467

By taking cash advance for bad credit, it is easy for you to improve your credit status. This loan is useful to relieve financial stress. This loan is totally free from credit verification and

By: Honard Nork l Finance > Loans l November 09, 2012 lViews: 300

These days, most people start online when they look for a place to live. But there are dozens of rental sites you could advertise on. How do you choose?

By: Brian Gregoryl Finance > Leases Leasingl April 09, 2012 lViews: 362

People are always looking to save money in these tough economic times and buying a new car is a big expense for most people. More and more people are turning to leasing new vehicles as it offers many

By: Jeera Mirl Finance > Leases Leasingl April 03, 2012 lViews: 158

When a business needs to purchase needed equipment, they will often have two options: lease the equipment and pay rental payments without obtaining the equipment or they could take their chances and

By: Juanita Swindelll Finance > Leases Leasingl April 02, 2012 lViews: 214

This is an article refuting some of the most commonly employed arguments in support of neglecting to apply for a lease extension. The short term saving approach of not applying for a lease extension

By: Tim Bishopl Finance > Leases Leasingl March 22, 2012 lViews: 202

Are you entering into a rental agreement for any residential or commercial property? The purpose of the agreement is to ensure that your interests as well as that of your landlord are met and that

By: Rizvana Abdull Finance > Leases Leasingl March 16, 2012 lViews: 164

A contract of lease is an agreement between a lessor/landlord and the lessee/tenant whereby the former agrees to rent out his or her property for a fee and subject to a contract of lease while the

By: Howard A Brownl Finance > Leases Leasingl March 10, 2012 lViews: 146

When a business needs to purchase needed equipment, they will often have two options: lease the equipment and pay rental payments without obtaining the equipment or they could take their chances and

By: Juanita Swindelll Finance > Leases Leasingl April 02, 2012 lViews: 214

Every single year, there seems to be more and more controversy surrounding the flu vaccine. What people fail to remember is that the flu shot is one of the best, and safest ways, that anyone can

By: Juanita Swindelll Health & Fitness > Medicinel February 29, 2012 lViews: 160

One of the best things that any homeowner can do to begin greening their home is to schedule a tankless water heater installation. By doing so, they can cut their energy use in half, thanks to the

By: Juanita Swindelll Home Improvement > Plumbingl February 27, 2012 lViews: 152

If you own or are starting up a business that will have a clientele that is dependent upon you to provide certain equipment or software for their use, the best way for you to get that equipment or

By: Juanita Swindelll Finance > Leases Leasingl February 02, 2012 lViews: 156

To be a success in business today, you have to be able to get the equipment you need to keep up with orders and your customers, as quickly as possible. Trying to negotiate financing with a loan,

By: Juanita Swindelll Finance > Leases Leasingl January 01, 2012 lViews: 173