When equipment is leased, the leasing company provides the rights to use the appliance for a fixed period against a fixed payment. At the end of the term, the options obtainable are – purchasing the accessories, returning it back or continue leasing it.
With leasing, cash flow is preserved, since you need only a minimal investment initially to acquire the appliance. This way, the payments are spread out comfortably over the term. This preserves the working capital for the growth and operation of the business.
When you choose to lease equipment, the obtainable credit lines are kept open. consequently, these credit lines are obtainable for other short-term financing or operations.
As your business grows, your equipment needs will change and grow in step. If you have leased appliance, it is easy to add on more of the same or upgrade your current appliance to what is needed now.
Section 179 of the Tax Code of the US allows people to take advantage of the new tax deduction limits. In some situations, these new stated limits allow you to deduct the complete equipment cost from your taxable income.
With appliance leasing, advantage of customized financing can be availed. This helps you select from a wide range of leasing packages and payment options. Thereby, a financing plan could be made, which will follow the cash flow of your business.
Traditional financing at edges and other financial institutes force people to undergo long waiting times for approval and impose strict requirements. Equipment leasing requires only a single application, and the formalities are completed in minutes. Approvals come by in a maximum of 24 hours. Additionally, within the week, you are using the leased appliance in your business.
A most popular and affordable program is the Operating Lease. When appliances are needed on a permanent basis, and not for a long term, operating lease is perfect for financing such appliances. This special program offers an affordable monthly rate for the period you need the equipment. At the end of the term, the appliance is simply returned.
Another most flexible leasing agreement is the Master Lease. This is for business owners who are unsure of exactly how long they will need the equipment they want to hire. The lease is set up for a stated period. At the end of the period, the business owner can apply for extending the lease without renegotiating the terms.