Equipment Leasing Might Be the Best Way to Acquire Your Equipment
Of all the things required to start a new business, acquiring the necessary equipment can often be a stumbling block for many entrepreneurs. Equipment can be costly, but it doesn’t have to be something you lose sleep at night over.
Many businesses use equipment leasing to purchase all types of equipment from computers to freezers to vehicles. First, evaluate your business’ equipment needs, money available per month to spend and how long you want to pay on the equipment. A typical business loan can give you the funds to purchase equipment, but banks often require the owner to apply for the loan in person with a variety of financial documents and business plan. The business plan should detail what the funds will be used for including equipment purchases.
As an alternative, there are equipment financing companies that may offer an easier application processes in contrast to traditional banks. Equipment leasing applications typically consist of filling out paperwork, speaking with a consultant at the company and completing requested financial paperwork. Sometimes, approval may be granted within one day.
Once the contract or agreement arrives, look it over and make sure it’s what was agreed upon. There are different equipment financing options available. Some companies offer deferred payment plans pushing the initial payment up to 90 days out. No money down finances the equipment 100% and then breaks that amount up into monthly payments. Lease-to-own has become more popular with a payment structured to give you free and clear ownership in the end. Choose the financing model that best fits your business needs.
In addition to new equipment leasing, consider saving money by investing in used equipment at the start. Ensure the equipment works well and looks good. The same types of hoops may have to be jumped through as with new equipment, but the cost is much lower for your business. Used equipment may be a good idea when first starting the business. New equipment can then be purchased as the company grows and expands.
Knowing how much money your company can reasonably expend per month on equipment leasing can save time in your hunt for the right equipment financing. The payment amounts may dictate lease terms. Working out some of these details ahead of time can save you some time and money, when finding, researching and applying for equipment financing.
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