Owning and operating a successful business requires up-to-date and fully functioning equipment. Without this your business’s daily operations can be put to a halt, costing you money. Equipment often has a heavy price tag, leaving business owners unsure of what to do. Rather than waiting it out to see how much longer you will get out of your old equipment or to save up the much-needed funds, equipment financing and leasing can get you the equipment you need fast and easy.
What is Equipment Financing?
Equipment financing is similar to an auto loan. You are able to purchase the equipment your business needs with little to no money down and make affordable monthly payments with interest. During the life of the equipment loan, there will be a lienholder on the equipment, failure to repay the loan as promised will result in the equipment being repossessed and sold by the financing company to recoup the amount financed, any remaining balance will be the business’s responsibility. When the equipment is paid in full the business holds ownership, creating a new asset for the business.
What is Equipment Leasing?
Equipment leasing is similar to a rental agreement or car lease. This allows your business to use the equipment for “x” amount of time, on average 2-5 years depending on your business’s needs. During this time your business makes monthly payments. The equipment belongs to the leasing company, failure to make the monthly lease payments will result in the repossession of the equipment, your business still being held responsible for the remain balance of the lease. At the end of the lease your business will be given the option to purchase the equipment at a discounted rate. Your monthly lease payments may be tax-deductible.
Get The Best Equipment Financing and Leasing Options Today
Many local lenders and equipment financing companies can offer you the equipment financing or leasing option you are looking for. Simply begin shopping for the equipment your business needs, then reach out to your local bank or the financing company within the equipment sales center for your financing and leasing options. Remember to make negotiations where possible to ensure your business is getting the best price on the equipment and financing terms and interest rates.
Chris Fuller went to the University of South Florida and has worked in the financial sector for over 20 years. He has extensive experience in all aspects of personal and small business lending, from personal loans, equipment finance to cash flow based solutions for small mom and pop businesses, and large corporations.