Every company needs tools to produce products or deliver services to their customers. In many cases, depending on your financial situation, it makes more sense to consider leasing.
There are multiple advantages to equipment leasing, including:
- Equipment leasing generally requires a smaller up-front payment than purchasing, this provides considerable cash flow advantages.
- You have less risk due to obsoleteness and negligible resale value. When the lease term matures, you usually have the option of acquiring newer tools; extending the lease; or buying-out the lease. SIMPLY STATED: More flexibility.
- There may be tax benefits compared to purchase.
- In certain leasing arrangements you can get specialized support.
- It is much quicker funding option than bank financing.
A prenegotiated buyout option gives you peace of mind knowing you have the option of purchasing equipment at the end of the lease if you determine it is in your best interest.