What Startups Should Know About Equipment Leasing

If you are starting a new business, you are probably looking for ways to save money so you can invest in inventory, marketing, and other growth tools. However, you are likely to need equipment to get your business off the ground. Therefore, these are some things you should know about equipment leasing.

Types of Equipment You Can Lease

You may be surprised by the amount and types of equipment you can lease. For example, you can get transportation equipment, such as vans, trucks, cars, and heavy machinery. You can lease computers, printers, software, and other technology. Production machinery, POS systems, warehousing, and material handling equipment can also be leased. You can get communication systems and security system components. Essentially, every piece of equipment you need for your business can be leased.

Who Is Eligible to Lease Equipment

Most companies can gain access to leased equipment. Startups and established organizations, large or small businesses, all these companies have access to leases. However, some leasing companies only work with established companies, while others specialize in startups. The key is to find a company that works with your industry’s machinery and companies with your longevity and credit.

Benefits of Leasing Equipment

You can experience several benefits from leasing your equipment. First, you save money. You don’t have to come up with a large down payment, and your maintenance and repairs are spread over the life of the lease. You can also schedule your payments so they don’t impact your cash flow during slower periods. Your flexibility also increases when you lease because you can add equipment during growth periods, and when your lease terms are fulfilled, you can return the equipment if you no longer need it.

Your machinery is also rarely obsolete when you lease it because you can upgrade it every time your lease ends. In addition, you get unique tax benefits. For example, your lease payments are considered operating costs, so they are fully tax-deductible, unlike purchased equipment, which is depreciated over several years.

You also don’t have to extend your credit or use existing lines of credit to purchase your equipment. The approval process is also much faster. You don’t have to wait a month for approval. Instead, you should know within 24 hours.

Gaining Approval

First, find the right leasing company. Although you don’t have to present as much financial paperwork, make sure you have it organized and ready. Avoid submitting multiple applications because this looks suspicious. Ask what the company needs, and get it ready for them.

Equipment leasing is a valuable tool you can use to grow your business. However, do your due diligence and choose the path that is right for you.

Seek Expert Assistance

Contact our team to start the application process or to schedule a time to receive a no-obligation business analysis. We’ll go over your goals and determine which one of our business loans is a good fit for your needs.