When striving to take your company to the next level, it’s important to first set yourself attainable business goals. You should also consider the hurdles that might thwart your progress along the way. Setting reachable key points in your business development enables you to measure your progress and track your achievements.
You should also have a vision of where you want your business to be two, five or ten years down the road. As the business grows, you may realize the one way to get to the next level quickly is to upgrade your equipment. If our sluggish economy has hampered your finances, leasing can be an effective way to access expensive items that your business needs to flourish today!
Leasing is essentially a method of renting an asset for a period of time and it can help many businesses get to the next level. On this blog we’ll look at some of the key advantages and disadvantages of equipment leasing.
There are basically two types of equipment leasing:
- Operating Leases,
- Finance Leases
Between these two forms of leasing , there are many different ways to get new or used equipment for your business.
You can lease almost anything!
Business owners are often surprised by the massive variety of equipment obtainable on a lease. In fact, most catering equipment in restaurants and hotels is on a finance lease, as are many pieces of high-spec plant machinery. Chances are the gaming machine in your local pub is held on a lease too!
Office fixtures and furniture, printing equipment, large coffee machines, commercial vehicles — it’s almost limitless what lenders will offer leasing finance on.
As well as being a good way to access expensive equipment, leasing can also be useful for subcontractors with a series of short term projects lined up, who want a “rent-to-own” option.
Immediate access to the equipment your business needs…
Rather than having to wait for adequate savings or the profit to roll in, leasing equipment means it can arrive at your door within days. You can also get a much higher standard of equipment than you might otherwise be able to afford if you purchased it outright.
Leasing is good for future budgeting, because you will make fixed monthly payments and not be subject to “floating rates”. Also, depending on your industry, you can negotiate payments that fluctuate with your seasonal income. Finally, installation, training and maintenance agreements can be included in the lease.
A Lease will free up other finance options!
Since the finance is secured on the asset, it’s not like a traditional bank business loan, so you might still be able to borrow money for other business purposes besides new equipment.
Equipment leasing is an efficient way for new-start businesses to get hold of the tools they need. Lenders usually specialize in different forms of leasing, such as finance leasing, lease rental ,operating leases
Priority Leasing has spent 20 exciting years in the equipment financing industry. We are a 100% Canadian owned and operated equipment leasing company servicing clients across Western Canada in Alberta, British Columbia, Saskatchewan and the Yukon. Whether you need equipment for a startup or an established business, we can help you GROW!
You can reach us by calling (403) 216-1930 or via email with our Website’s contact form.