A How-To Guide to Equipment Leasing
Rather than paying for equipment outright, many businesses choose to make smaller monthly payments to lease needed equipment. This allows the option of returning the equipment at the end of the leasing period, if desired, which is great if technology has advanced and the equipment is no longer needed. You can also often get tax credits for your leased equipment.
You will want to answer some questions before you get started with equipment leasing. The first thing to consider is what your monthly budget is and if it is enough for the leasing process. You will also want to consider how long the equipment will be used. If it’s a short-term need, leasing can be a great option. However, if you need it for longer than a few years, buying might be a better idea. Finally, consider how quickly the equipment will last before becoming obsolete. If it relates to technology, this time period could be short, which speaks to a good option for leasing.
How to Lease Equipment
In order to get equipment leasing you will have to complete an equipment leasing application for the lessor you choose. You will also need to provide business information, usually financial data, for their perusal. The lessor will then process the application and provide you with the result. If you are approved, you will finalize and review the final information and sign documents. After the lessor looks this over and receives your first payment, the lessor will let you know the lease is in effect. Funds will then be provided to you or the company you are purchasing equipment from.
Learn More About Your Options
Need more information about equipment leasing and financing? Get in contact with us at Smart Capital Lending Group at 407-202-8494, we’d be happy to provide more information and help you make an informed decision.