Equipment Financing and Leasing: What You Need to Know

Curated by WorkingFromHome

This article is an excerpt from the original article found in the Read More link – please follow for full article.

Opinions expressed by Entrepreneur contributors are their own.

Some of the equipment vital to business operations is painfully expensive. For a startup business in particular, the idea of affording necessary equipment can feel like mission impossible. At the same time, the business needs the equipment to make the money…to afford the equipment.

How does a business get past such a frustrating catch-22? Equipment financing and leasing is the answer.

What is equipment financing?

Equipment financing is the act of using a loan or lease to purchase or borrow hard assets for your business. It serves as a business financing option. You can use it to buy or lease any kind of physical asset. Physical assets can include anything from a restaurant oven to a company car.

Recently, an Equipment Leasing and Finance Association (ELFA) survey found that 80 percent of American businesses lease at least some equipment. Companies using leasing range from the Fortune 500 to Mom and Pop stores.

Related: When and How to Lease Equipment

The advantages of equipment financing and leasing

One big advantage is you will pay predictable amounts every month, thereby making budgeting a lot easier. You can even build business credit on a program like this. The equipment is great collateral. As a result, the lender probably won’t want any other collateral.

Often, you’ll put down less money than if you were buying the equipment. You also might be able to negotiate flexible terms. Plus, it’s easy to upgrade equipment once your lease ends. This is helpful if your equipment is something like a computer, which can quickly become obsolete.

The disadvantages of equipment financing and leasing

But there are disadvantages as well. Your down payment can be large. Good personal credit is often necessary to qualify. Another downside is if the financed equipment becomes outdated. At that point, your business ends up being stuck with it until the end of the lease or loan.

Often, leases can end up costing more than buying. When the lease ends, you’ll need a new lease or will have to make some other arrangement. In contrast, buying equipment makes it yours to keep or to sell.

What you should be asking about equipment financing and leasing

What sort of equipment do you need? And how long do you need it for? Are you looking to bundle supplies, training, service and the equipment lease into a single contract? Have you thought about your company’s future needs, so yo

Source: Entrepreneur.com

Read more here:
Equipment Financing and Leasing: What You Need to Know

You May Also Like…

6 Tips to Consider When Searching for a Franchise for the First Time

6 Tips to Consider When Searching for a Franchise for the First Time

Opinions expressed by Entrepreneur contributors are their own. With over 3,000 different franchise concepts to choose from, the intense search to find the perfect match for your goals, income potential and lifestyle can leave you wanting to get started right away. But before you do, pull back on those reins and make sure you’re squarely in the saddle before you begin rounding up your preferred choices. 10’000 Hours | Getty Images The last thing you want to do is rush headlong into an ambush of your own doing. But if you follow this advice, you’ll have a much better chance of leaving your troubles behind and riding off into the sunset.If you’re searching for a franchise for the first time, here are six tips to consider.1. Crack a spine or twoIn this case, cracking a spine or two means you should read a good book or two about becoming an…

Why Investors Should Look at Vietnam’s Renewable Energy Industry

Why Investors Should Look at Vietnam’s Renewable Energy Industry

Opinions expressed by Entrepreneur contributors are their own. At the 2021 United Nations Climate Change Conference, members of the Vietnamese government headed by Prime Minister Pham Minh Chinh promised carbon neutrality by the year 2050. For Vietnam, a still-developing country, to realize this goal, it would have to phase out coal plants and modernize its national grid.Currently, Vietnam is expecting a recovery of 6.5% in GDP growth in 2022, according to the Asian Development Bank. Consequently, power consumption has increased more than 11% per year, significantly faster than the national GDP. This is feeding an almost insatiable demand for more power generation and investment.However, domestic fossil fuel production cannot keep up with demand, requiring Vietnam to rely on foreign markets to acquire enough resources to power its infrastructure. Therefore, Vietnam’s reliance on imported energy to run its electric system and climate change are catalysts for the government to pivot towards renewable…

Working From Home TV …

Tips to enhance your own website…

How to Create a Giveaway to Grow Your Email List by 150% – Website Tips

How to Create a Giveaway to Grow Your Email List by 150% – Website Tips

Do you want to start a giveaway and get more email subscribers? Giveaways are one of the fastest ways to grow your email list, increase traffic, and boost sales. They help you reach new audiences and boost user engagement on your website. In this article, we’ll show you how to use a giveaway to grow your email list faster. Why Use a Giveaway to Grow Your Email List? Did you know that email marketing sees a 4300% return on investment (ROI) on average for businesses in the US? People who sign up for your emails are already interested in your products and services, making them highly likely to convert into paying customers. However, the hardest part is getting more people to join your email list. This is where running a contest or giveaway on your WordPress site comes in handy. It helps you grow your email list while getting more…

How to Track Video Analytics in WordPress (Step by Step) – Website Tips

How to Track Video Analytics in WordPress (Step by Step) – Website Tips

Do you want to know which videos your visitors watch the most on your WordPress website? Videos are a great way to bring life to your website and boost engagement. By tracking video analytics, you can see how your videos are performing with metrics like total views, watch duration, and more. In this article, we’ll show you how to track video analytics in WordPress using Google Analytics. This solution works for YouTube, Vimeo, and other HTML5 video embeds. Why Track Video Engagement in WordPress? Adding videos to your content makes your articles more engaging and helps in getting people to spend more time on your site. However, if you have multiple videos on your WordPress site, then how do you which type of content is performing the best and whether people are watching your videos or not? Tracking video engagement in Google Analytics can help you uncover these insights. You…

How to Easily Create a Custom WordPress Theme (Without Any Code) – Website Tips

How to Easily Create a Custom WordPress Theme (Without Any Code) – Website Tips

Do you want to create a custom WordPress theme from scratch? In the past, you had to follow complicated WordPress tutorials and have decent coding knowledge to build a custom WordPress theme. But thanks to new WordPress theme builders, now you can easily make one without learning any programming skills. In this article, we’ll show you how to easily create a custom WordPress theme without writing any code. Here is the list of topics we’ll cover in this article. Creating a Custom WordPress Theme for BeginnersCreating a Custom Theme with SeedProd Theme BuilderEditing a Theme with SeedProd Theme BuilderChanging the Site-Wide Design for Your ThemeApplying and Publishing Your Custom WordPress ThemeCreating Other Layouts for Your Custom WordPress ThemeReady? Let’s get started. Video Tutorial Subscribe to WPBeginner If you’d prefer written instructions, just keep reading. Creating a Custom WordPress Theme for Beginners A WordPress website uses a theme for website layout…

0 Comments

Submit a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.