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Why consider equipment leasing as a startup

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If you are beginning a start-up there will be lots of equipment needs that you will have to satisfy.For many start-ups one of the biggest challenges is how to get the equipment they need with limited cash resources.Equipment leasing can provide a way to do this.Rather than having to come up with substantial capitol to purchase all of the needed equipment companies can lease what they need.Research has shown that eight out of ten U.S. companies lease some or all of their equipment. And, nine out of ten companies say that they will use equipment leasing again.In fact of all the ways to acquire equipment, leasing is the method most frequently used for all equipment types. Almost any type of equipment can be leased-from fax machines and printing presses, to trucks and bulldozers.So if you are putting together equipment for your business here is why you should consider equipment leasing as a start-up-

  • Equipment leasing gives you added credit availability. Since equipment leasing companies accept a multitude of payment options and terms your bank credit lines are not affected.This is a benefit since you will retain your bank borrowing capacity for other needs.This is especially important since start-ups usually have few financing options and need to conserve the ones they do have.
  • Equipment leasing conserves working capital financing.Equipment leasing will finance100% of the equipment cost.This then leaves precious working capital for other needs.Many small business owners are staggered by the amount of needed capital that will be required to just open the doors of their start-up. By leasing equipment you can put your money where you really need it.
  • Equipment leasing improves the overall cash flow.Since you do not have to pay for the equipment up front equipment leasing allows you to pay for the equipment as income is earned from its use. By leasing what you need you can get the doors of your business open and begin earning money before having to start the repayment process.Paying cash for equipment means paying for it before it is even in production.
  • Equipment leasing is often tax deductible. In many cases, small business equipment lease payments can be treated as a fully tax deductible expense. This provides additional savings over just the costs of the equipment.It is crucial however to check with your tax professional concerning the specifics of your situation.
  • Equipment leasing is quick, easy and less expensive than other methods. The whole equipment leasing process is faster, simpler, and often less costly than other equipment financing alternatives. Equipment leases generally always are less costly than normal credit card lines. Many equipment leasing companies can process an equipment order within a short time frame and have everything ready for you at delivery.
  • Equipment leasing can reduce maintenance costs. Many equipment leases can be written to include maintenance costs.This way if the equipment breaks down someone else must come and fix it at no charge to you.Many companies appreciate the ease of this process since they no longer have to worry about how to fix equipment.Most equipment leasing companies will bring a replacement if the equipment can not be fixed immediately on site.
  • Equipment leasing can help you stay up with the latest technology.It is simply not practical or affordable for small businesses to be able to purchase the latest technology ever time something is upgraded.However by leasing their equipment they can often change out equipment easily and affordable as technology dictates saving them both time and money.
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