5 Reasons to Prefer Equipment Lease
February 15th, 2019 by Advance Point Capital
Whether it is office equipment like printers and photocopiers or the restaurant equipment like ovens and dishwashers, every business has its own unique needs. The cost of equipment you need could be very high. What should you do to buy such costly equipment for your business?
Equipment Leasing is the Solution
It refers to the funds that you get from the lender which you can use to pay for the equipment lease. With equipment lease financing, you get the equipment without hampering the cash-flow for other requirements. There are many more strong reasons to prefer an equipment lease:
1-More Purchasing Power
With leasing, you get more freedom on the type of items that you can afford. As the cost of leasing them per month is far lower than buying them outright, you have more options to choose from. With better quality equipment at your disposal, it improves productivity as well.
If you are starting a new business, you may not have ample funds to foot the cost of the expensive equipment. You may be unwilling to add costs unless you can generate profitable revenue. But to make a start, you should consider a lease.
2-Freedom from Replacement Cost
You should understand that a few types of equipment may go obsolete after a few years. Especially, if your business relies on expensive computers, the hardware, and operating systems that depreciate with usage. You might need the latest equipment to ensure that the business operates efficiently. Though, if you try to buy them new, it can drain your finances. Instead, you can try equipment lease financing as an option to upgrade to the latest equipment at minimal costs.
When you go with equipment leasing, you can get the tax deductions on the payments you make. According to the internal revenue code, the business owners can make expense deduction for the purchase of depreciable business equipment. You can use the tax savings for other business pursuits.
4-No Maintenance Costs
Lease costs often include maintenance of the items in case of the break-down. When you go for equipment leasing, it is crucial. In case of a breakdown, the warrantor will come and replace or fix the equipment. It means you need not worry about spending on maintenance time and again. It also helps in reducing the downtime..
There are some who argue that if you lease equipment for an extended period, you may end up paying more money and you don’t own anything at the end of the lease term. But, is there any harm in leasing equipment when you have nothing to dispose of at the end of the lease? Many consider this as a wise financial decision.
5-You Get the Needed Equipment Quickly
When you lease an equipment, you can get it in no time. If the equipment which you are planning to lease is mission-critical to productivity, then with leasing option, you don’t have to wait. Same might not be the case when you buy a new equipment as it may have to undergo many fittings before it can be used in the office or factory.
How to get Equipment Lease from AdvancePoint Capital?
Getting a lease from AdvancePoint Capital is easy. You need to follow these steps:
- Fill the pre-approval form
- Provide the relevant documents
- Leases ranging from USD 500-USD 150,000 can be obtained
We have a high approval rate and we don’t charge any upfront fee. You can get the approval within 24-hours of the application.
Call for a free Quote @ 1-800-381-8920