Some of the most successful small businesses in America never purchase their equipment… they lease it! equipment leasing makes sense for a lot of businesses today because leasing provides many benefits that purchasing does not.
Who Leases Equipment?
According to the U.S. Small Business Administration:
85% of all companies lease equipment.
89% of those companies that lease equipment will lease again in the future.
75% of all companies that lease equipment indicate that leasing is their best means for financing equipment purchases.
Businesses of ALL SIZES lease and finance equipment.
The Benefits of Leasing Equipment
Purchasing Power: Equipment lease financing allows the lessee to acquire more and/or higher-end equipment.
Improved Balance Sheet Management: Certain types of leases help the lessee better manage the balance sheet and improve the overall financial picture, by conserving operating capital and freeing up working capitalfor inventory, expansion, and emergencies.
100% Financing: With equipment leasing, there is no down payment. The term of the lease can be matched with the useful life of the equipment.
Up-to-date Technology: Leasing provides companies with the ability to keep pace with technology. The lessee can upgrade or add equipment to meet ever-changing needs.
Many lessees choose to structure their leases to include installation, maintenance and other services, if needed.
Easier Financing Than Loans: With a lease companies can avoid requirements like compensating balances, large down payments, client list reviews and cash-flow projections, making the finance process faster and easier.