Life Better

If you own and operate a small business, then the tools that allow you to conduct that business are your lifeline. Whether that equipment is a brush hog, combine harvester or state-of-the-art printing machine, the performance of that machine directly impacts your bottom line. While each piece of machinery is vital to your bottom line, that does not always mean you have the funds to buy a new piece of equipment as needs arise or old equipment breaks.

What can you do when you find yourself in need of a multi-thousand dollar piece of machinery? Or even equipment in excess of hundreds of thousands of dollars? There are options for business owners who have extended all their capital. If your business has a limited amount of capital to draw from, then choosing which equipment to buy and which to lease is a calculated choice; both sides have pros and cons. Here are a few of the advantages of leasing equipment rather than financing equipment or buying it.

Before spending six years working at two different leasing firms, I was skeptical about leasing. Banks and loans seems to be the less risky, standard approach to financing equipment. However, now that I understand the business of leasing, I am a huge proponent.

Equipment leasing can be an extremely beneficial way to get the equipment you need quickly for your business operations. With leasing, a lessor who owns or controls the equipment transfers possession and use of the equipment for a period of time to you, the lessee. In exchange, you pay the lessor rent. A loan, on the other hand, is when a borrower gives you a certain sum of money with the expectation of total repayment.

While you will always want to carefully consider the lease vs. loan proposition, be aware that leasing can offer your business some tremendous benefits such as:

• Quick Access to Equipment. Leases generally require less paperwork and processing. You’ll get your hands on the equipment sooner.