Why more small business owners are turning to equipment leasing to finance their business
https://www.leasefunders.com/ Why more small business owners are turning to equipment leasing to finance their business
https://www.leasefunders.com/
Why more small business owners are turning to equipment leasing to finance their business
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<strong>Why</strong> <strong>more</strong> <strong>small</strong> <strong>business</strong> <strong>owners</strong> <strong>are</strong> <strong>turning</strong> <strong>to</strong> <strong>equipment</strong> <strong>leasing</strong> <strong>to</strong> <strong>finance</strong> <strong>their</strong> <strong>business</strong><br />
As a decision-maker in your <strong>business</strong>, weighing all <strong>equipment</strong> acquisition choices is a vital element not<br />
just <strong>to</strong> get the job done, but <strong>to</strong> make sure your <strong>business</strong> has the right <strong>equipment</strong> and working capital it<br />
will need <strong>to</strong> grow.<br />
With <strong>equipment</strong> <strong>leasing</strong> you do not need <strong>to</strong> be worried about using a large amount of your <strong>business</strong>es<br />
working capital <strong>to</strong> purchase <strong>equipment</strong>. Instead, you can use a <strong>small</strong> amount of working capital <strong>to</strong> enter<br />
in<strong>to</strong> an <strong>equipment</strong> lease and get the <strong>equipment</strong> you need.<br />
65 percent of the best <strong>business</strong>es lease <strong>equipment</strong>, based on an ELA survey. The <strong>to</strong>p reasons these<br />
companies cite for <strong>leasing</strong> include consistent expenditures in budget management, increased cash flow,<br />
and the ability <strong>to</strong> have the most recent <strong>equipment</strong>.<br />
Another reason <strong>business</strong> <strong>are</strong> <strong>turning</strong> <strong>to</strong> <strong>equipment</strong> <strong>leasing</strong> <strong>to</strong> <strong>finance</strong> <strong>their</strong> <strong>business</strong> is because of its easy<br />
credit requirements. Not all <strong>equipment</strong> <strong>finance</strong> companies offer high risk financing. But sites like<br />
Leasefunders.com does!<br />
Many banks have turned <strong>their</strong> backs on start up <strong>business</strong>es because of the high risk of them going out of<br />
<strong>business</strong> within 3 years of opening <strong>their</strong> doors.<br />
Then the banks made things difficult for <strong>business</strong> <strong>owners</strong> with credit problems. Either <strong>turning</strong> them<br />
down outright or offering them only a <strong>small</strong> fraction of the amount they needed.<br />
The right <strong>equipment</strong> <strong>leasing</strong> company can help both of these <strong>business</strong>es obtain the financing they need<br />
And the choice for a growing number of <strong>small</strong> <strong>business</strong>es is clearr: <strong>equipment</strong> <strong>leasing</strong>.<br />
Besides the resons stated above. What other <strong>are</strong> making the choice <strong>to</strong> use <strong>equipment</strong> <strong>leasing</strong>?<br />
• The payments can be regarded as a rental leading <strong>to</strong> a 100% cost write-off. At the end of the<br />
year you'd simply complete your payments and deduct them entirely as a cost.<br />
• Most leases don't need <strong>to</strong> be shown in your financial statement as a liability, because<br />
theoretically it's a contingent liability, and just needs <strong>to</strong> be shown as a footnote. This keeps your<br />
financial statement from getting overloaded with debt and is important if your lender lines<br />
require keeping certain ratios.<br />
• The biggest advantage, however, is that you need very little documentation <strong>to</strong> obtain a lease.<br />
Unlike a SBA loan that requires a full financial package. An <strong>equipment</strong> lease usually needs an<br />
application up <strong>to</strong> $50,000.<br />
• It generally requires <strong>small</strong>er amounts of cash up front and monthly payments on your<br />
construction <strong>equipment</strong> <strong>leasing</strong> <strong>are</strong> usually lower comp<strong>are</strong>d <strong>to</strong> installment obligations, thus<br />
freeing up money and increasing the liquidity of your resources.<br />
Equipment <strong>leasing</strong> levels the financial “playing field” allowing <strong>small</strong> <strong>business</strong> <strong>to</strong> obtain cutting edge<br />
<strong>equipment</strong> that <strong>their</strong> competi<strong>to</strong>rs <strong>are</strong> using. While not draining <strong>their</strong> working capital.