Equipment is essential to every business. Whether you run a startup with a small team and a few laptops, a medical practice with highly specialized machines, a construction company with large earthmovers, or any other type of business, equipment is the key to efficiency and productivity. While many businesses try to purchase equipment to add equity and assets to their portfolios, there are times when it makes more sense for businesses to lease equipment.
Credit and Collateral Considerations
Purchasing equipment can be a steep expense, especially for new and small businesses. While loans can help offset the cost, financing of that order requires stellar credit and collateral. For businesses that might not have the credit and assets necessary to secure loans to purchase equipment, leasing offers a more accessible option. Equipment leasing packages allow new and small businesses to get the equipment they want with low monthly installments and the ability to deduct payments when filing taxes. Even established businesses with impacted credit can still lease the equipment they need.
Businesses that Use Technical or Specialized Equipment
Businesses in technical fields require specialized equipment. Healthcare providers, software and hardware developers, robotics companies, and many others need the latest and greatest equipment to reach their milestones. Unfortunately, the equipment used by businesses in those fields has a very limited lifecycle, as the machines, tools, and software are constantly being improved. Purchasing equipment makes little sense in these scenarios, as the items depreciate quickly and have much lower value aftermarket. Businesses such as these lease equipment because it is a financially sound strategy, and it allows them to trade up to newer versions when they become available.
Businesses in Heavy Industries
Construction, manufacturing, and other heavy industry businesses place a lot of wear and tear on their equipment and vehicles. When businesses in these industries purchase equipment, there is an implied added cost for maintenance and repair, which is usually handled by a third-party. Equipment leasing packages typically have maintenance and repair built into the agreement, as well as training for employees. Additionally, leasing heavy equipment has a much lower upfront cost than purchasing new or aftermarket equipment.
Learn More about the Advantages of Leasing Equipment
Contact the team at Web Finance Direct to learn more about the benefits of equipment leasing packages. We work with businesses across all industries to provide the equipment they need to stay successful.