The Ins and Outs of Equipment Leasing
When it comes to new equipment or technology, getting the most recent model can be expensive. Equipment leasing can be one great way to use the newest thing for your business at an affordable rate. These contracts allow you to use the equipment you need in exchange for a regular payment, most often monthly. If leasing sound like a good solution for you, here is some more information you may want to know.
What is Leasing
Leasing is a contract between your business and the equipment owner that allows you to choose the time frame you use the equipment for, while making smaller payments every month. When your contract is up many companies offer the option to purchase the equipment completely. Rates may differ depending on the agreement and your leasing company, but are often more affordable than purchasing equipment outright when you intend use only short term.
Benefits of Leasing
There are a number of benefits to equipment leasing. If you only need the equipment for a short time, a lease is a great way to gain access to the machinery you need without being stuck with equipment once the project is done. Additionally, leasing can be a good option for technology or equipment that frequently receives upgrades. A lease can allow you to use the most recent models without having to constantly buy new and sell the old.
Things to Know Before Signing
As with any contract there are a few things you may need to know before agreeing to a lease. Start with how long you intend to use the equipment for. This can help you determine the desired length of your lease, and depending on the equipment value whether you are leasing to own or simply returning once the contract is up. If your equipment is frequently upgraded you may want to include the option for trading up in your lease agreement. It’s also important to know what your monthly budget is as you will need to include your lease payment in your outgoing funds calculations.
If you’re looking at a great way to utilize the newest equipment or technology in your business but don’t currently have the funding to purchase it, equipment leasing may be one option you want to consider. A lease agreement is a contract that allows you to use the desired equipment in exchange for a monthly payment. There are a number of benefits including access to the most recently updated models.