For companies that process equipment, micro-ticket leasing can provide significant advantages for businesses. Because it reduces the need for corporate cash flow, it does not invest in high-tech equipment that can quickly become obsolete. In addition, it also makes bank credit options open. This is one of the fastest growing methods of financing equipment on the market today. So it's no surprise that about 80% of US companies today have acquired some equipment at the time of leasing. Leasing is not only suitable for small family businesses; Fortune 500 companies even use it.
With micro-ticket leasing, companies do not have to pay for the rental equipment in advance. This allows the company's working capital to be used free of charge for other business purposes, such as maintaining critical inventory levels. The waiting time for the required equipment is almost zero because the processing time required is very short. In addition, any entrepreneurial or fairly new business with little or no credit or business history may be eligible for micro-ticket leasing. Even for companies that have exhausted their banking credit lines, micro-ticket leasing can provide a way to continue operations.
So, is micro ticket leasing really useful? This lease is for any hardware or device that costs between $1,000 and $10,000. If the total sales are less than $100,000, the buyer may not need to display any financial information when submitting the application. Unlike standard bank loans, buyers with less than two years of business history are still approved. Approval is usually obtained within one to two business days, and the buyer receives a list of terms that can be reviewed and then accepts or rejects. The main benefit is that even if the bank may refuse the transaction, the micro-lease company can say yes.
What did the customer get from the micro-ticket rental? The total amount the customer must pay for the equipment may be lower than the traditional lease, and the monthly rental payment will be sufficient to be managed by any business. Often, traditional financing may require a down payment of at least 20%. Micro-leasing companies may only need to pay in advance for the first month. Since the bank credit line is not related to the micro-ticket lease, the lease payment has no effect on the facility. The funds borrowed by customers from their banks are not affected and can be used for other business opportunities. In addition, as customers make lease payments, their credit ratings will increase. As you get older, upgrading your device is easier. Older devices can be quickly upgraded to the new version. In addition, lease payments may generate income taxes, which may increase the company's after-tax cash flow. Usually, lease payments are paid in monthly installments to prevent market interest rate fluctuations.
Most new businesses face the problem of limited cash flow, but still need equipment to run. With micro-ticket leasing, these companies can acquire new equipment without significant capital investment, resulting in significant cash flow advantages. The expected increase in sales and profitability from the point of sale or other customer enhancement equipment may also far exceed the cost of equipment rental.
Orignal From: Micro-ticket leasing as a valuable financing option for companies
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