There is no denying that more and more businesses are opting to lease equipment these days. In fact, of all company acquisitions that are made, 3 in 10 of them are leased. Because of this, you may have noticed that there are quite a lot of leasing equipment companies offering their services today. This can make it challenging to narrow down your search effectively and end up with the best option for you. But do not worry, as in this guide, we are going to take you through all of the vital details so that you have the information you need before making any important decisions.
What is equipment leasing?
There is only one place to begin, and this is by explaining what equipment leasing is. This is a form of finance where the company owner will not buy the equipment, but rather they will rent it. Companies can lease a wide range of equipment, including costly equipment that is needed to run their operation, from medical machines to vehicles and computers. The lease will last for a specified period of time.
The main draw when it comes to equipment leasing is the fact that you can make small, monthly payments, which are set at a fixed amount. This means that you know what you are going to be paying every month, so there are no nasty surprises and everything is a lot easier for you to manage. At the end of the contract, you can extend the lease should you wish to do so. In some cases, you can purchase the equipment if you want, or you can, of course, return it.
The benefits of equipment leasing
There are a lot of benefits that you can expect if you decide to go down the leasing route. This includes the fact that leasing equipment will often make you entitled to tax credits. You can also make sure that you are able to accommodate any spikes in demand, as you can simply lease equipment as and when needed, and for short periods of time. If you are someone who likes to have the latest equipment and update your machinery regularly, leasing facilitates this.
In addition to this, another benefit associated with equipment leasing is that a considerable down payment is not usually needed. This means that you may be able to acquire a certain type of equipment that you otherwise would not have been able to afford if you needed to purchase outright. If that was not enough, the fixed payments make it a lot easier for business owners to manage their cash flow as well.
Selecting the most suitable leasing company for your needs
Now that we have given you some insight into equipment leasing, how it works, and why it is so popular, we are going to take you through some of the main areas that need to be considered when looking for the best one for your business. Here are some of the main elements we would advise you to consider:
There is only one place to begin, and this is with the expertise and experience that the leasing firm has. You do not want to go for a company that is just starting up, as they are going to be more likely to make mistakes. You want to be confident that they have worked with a lot of businesses before and that they have a good level of experience. Opting for an established company when it comes to something like leasing always makes the most sense.
Next, consider how long it is going to take for you to get the equipment you need. Firstly, you need to take a look at the waiting times in terms of your application being assessed, evaluated, and approved. Then, consider how long it is going to take for you to receive the equipment at your business premises. When you consider the fact that a lot of businesses lease to deal with spikes in demand, it is not hard to see why this point is an important one.
Equipment lease rates and fees
Of course, a good deal is something we all want when acquiring anything for our business. Therefore, it makes sense to spend some time comparing the different leasing packages and rates so you can end up with one that is right for you.
Credibility and reputation
Researching carefully is critical. Remember, the machines and equipment you hire all make up part of your considerations when it comes to health and safety. Even though you are leasing, you will still be liable, so learn more about building a compliance department to manage this. You cannot simply blame the leasing company for any problems. So, take the time to read reviews and choose a company with a huge amount of care. The last thing you want to do is run into any legal problems.
Contract terms and conditions
Finally, you need to consider the terms and conditions of the contract. There are a lot of different particulars that you will find in leasing contracts. No two leasing contracts are ever the same, so the worst thing you can do is sign on the dotted line without reading all of the terms and conditions. Yes, we know it won’t be the most exciting thing you ever read, but it is definitely one of the most important. You need to make sure that you understand all of the rules regarding renewing the contract, missed payments, contract length, and so on.
All in all, it is really not difficult to see why so many companies end up turning to leasing in order to get the equipment they desire. If this is something you are thinking about doing for the first time, make sure you consider all of the tips and advice that we have provided above in order to find the perfect leasing company for your needs and requirements.