Why buy when you can lease?
Buying the latest business equipment is a necessary evil if you want your business to stay ahead, right? Maybe not. Here are the key reasons SMBs should consider leasing equipment.
The benefits of leasing
There is another option for SMBs who want the flexibility to acquire the latest technology and equipment whenever there is a need – leasing. The key advantage of leasing business equipment is that it enables new assets to be acquired easily with minimal initial outlay of funds. Therefore, new equipment can be obtained without impact on an organisation’s cashflow.
Having a flexible finance facility also allows businesses to spread payments over the useful life of the equipment. This is a bonus when managing cashflow and leaves the business with capital to invest into other areas of the practice. Additionally, finance facilities are often tax friendly with monthly payments 100 percent tax-deductable if used for business purposes – making them a cost efficient way to access new equipment.
Just as important is what happens when the equipment comes to the end of its useful life. SMBs need the flexibility to upgrade or replace resources at any time, ensuring that they are not left with obsolete equipment. A flexible finance facility enables businesses to easily upgrade to new, advanced equipment as needed. This way, business owners can invest for growth – ensuring that they have the option to access the market leading resources that will enable them to develop and grow their businesses.
When it comes to putting in place flexible finance facilities, SMBs should look to work with organisations who specialise in financing business equipment including IT, telephone and business hardware and software requirements. Unlike traditional lenders, these organisations are able to offer specific, tailored solutions designed to secure the equipment required for growth, making them tax effective, cashflow friendly and flexible. The Leasing Centre believes every finance strategy should be specifically designed to help bridge the gap between growth objectives and budget limitations, to ensure that SMBs get the best investment for their business.
Key reasons why SMBs should consider leasing equipment
- Leasing preserves cashflow: Businesses are not required to find capital or outlay large sums of money upfront when acquiring equipment.
- Affordable payment plan: Fixed, affordable payments over a period of time reduce the impact on cashflow, freeing up funds for investment in other areas of the business.
- Increased flexibility: Upgrading equipment during the life of the equipment is simple. Businesses will benefit from the flexibility that upgrading offers as they are able to replace equipment during or at the end of a leasing agreement.
- Maintain competitive advantage: The ability to upgrade equipment at any point in time keeps the organisation at the forefront of current technology.
- Significant return on investment: Leasing offers the advantage of a faster return on investment. A manageable payment plan determined in advance helps businesses align cashflow with the cost benefits of the equipment.
–Nick Aronson is General Manager, The Leasing Centre.