Leasing for Growing Businesses

Making smart financial decisions is extremely important for growing businesses. For a lot of businesses, finding the money to expand and grow their space can be challenging, and needlessly difficult. New business equipment and office furniture can be extremely costly, especially when capital is needed for other aspects of the business.

Leasing vs. Buying Business Equipment

If your company is growing, has recently relocated, or increased expenses by hiring more employees, you will need more computers, equipment, machinery, technology, or office furniture. As a business owner you must choose between leasing and buying the equipment.

Leasing is a much easier way to help your growing business. Before you make the decision to lease or buy, consider the following:

1. Leasing offer financial benefits such as lower monthly payments, little or no down payment, and tax savings.
2. You can lease everything from cars, trucks, furniture to machinery to computers to technological devices.
3. Qualifying for a lease is usually a lot easier and faster than getting approval for a loan--and leases are usually a lot more flexible.
4. The dollar amount of a lease is usually not reflected on your personal credit report. This means it will not affect your debt to income ratios and thus will usually not affect your ability to get additional financing on homes, cars and credit lines.
5. When you lease business equipment, you always have the flexibility to buy the equipment for its remaining value at the end of the lease. In some cases, the end purchase value of the equipment can be established prior to activating the lease.

The Difference between a Lease and a Loan

To make the best financial decision for your business, make sure that you know the difference between a lease and a loan. For example, a loan sometimes requires you to invest a down payment in the equipment in order to build equity in the equipment. The loan simply covers the remaining amount of the equipment after down payment. This type of loan can also restrict future borrowing with that bank as they consider limits to how much they will lend to their clients based on financial strength, time in business and ability to repay over requested terms.

Bank loans usually require full financial disclosure and thus require tax returns on the principal(s) as well as corporations, interim statements and balance sheets along with personal financial statements from the principal(s)

On the other hand, a lease can be structured to only need a simple one page application (depending on the dollar amount) and usually requires no down payment. Therefore, a lease covers the full dollar value of the equipment expected to be depleted during the lease term.

Equipment Leasing Options to Help Businesses Grow

You rely on business equipment and technology every day to run your business and grow. Simplified Leasing offers a wide range of equipment leasing options to suit your business needs. Contact us today to learn more about leasing for your growing business.