Most business owners need to purchase at least one piece of large equipment that they don’t have the funds to buy outright. Whether it is computers, vehicles, farming equipment, or another valuable asset, obtaining a loan large enough to cover the purchase can be challenging. This is especially true when your business has existed for less than two years, you had credit issues in the past, or the equipment you need costs into the six figures. Many small business owners find that equipment leasing works better for their needs than buying the equipment outright.
Why Using the Latest Version of Equipment is Important
When you compete for customers with a company that creates similar products, it is important that your customers know your company uses the most up-to-date equipment. The item that was a hot seller last holiday season could be all but forgotten about this year, which means your company must have the ability to step in and start producing ahead of the trends. Access to the most updated version of business equipment through equipment leasing allows you to do that. Here are some other factors to consider when using older business equipment:
- Reduces employee productivity
- Increases the likelihood of employee injury
- May not be compatible with new technology
- Need to pay frequent maintenance and repair costs
- Old equipment may no longer meet regulatory compliance issues
Equipment leasing enables you to begin using the product immediately while making monthly payments on it. As the end of the lease term, you can negotiate with the lease holder to extend the contract or buy the piece of business equipment outright. A common arrangement is for small business owners to renew the lease contract for as long as that piece of equipment is the latest version available. That way they are not stuck paying for equipment that becomes obsolete long before the final payment on it comes due.
Infinity Lending Solutions is available now to help you understand equipment leasing and other alternative financing options. Please contact us to learn more or to request an appointment.