Why rent, don't buy?

Companies of all sizes and types must acquire the necessary equipment at a time to start, maintain or expand their businesses. The two traditional ways to obtain these assets are to use working capital or borrow money from a bank. These choices are not always feasible or beneficial. People usually say that cash is king. Many companies want to have as much cash as possible, as this will help the company be more flexible in responding to changes in the market and competitors.

This news is worth repeating. When it comes to equipment - whether you are riding your own field on a tractor, tapping on a computer or accelerating a dental drill for a root canal, you can't start preparing too early. This is true whether you are planning to buy a new device or if you need to replace a device that has suddenly failed.

Leasing can provide a flexible alternative to get the equipment you need to run your business without having to pay all of it at once. Many experts recommend purchasing only items of value appreciation and leasing items that depreciate as a result of use.

What is a lease?

A lease is a legally enforceable contract that defines the relationship between a party [the "lessor"] and the other party [the "lessee"], giving the lessee the right to use and own the lessor's equipment for a specified period of time. Exclusive rights. time. The tenant is responsible for all ancillary expenses associated with the use and maintenance of the equipment. Tax and insurance are also the responsibility of the lessee during the lease period. The lease contract requires the lessee to pay or lease the equipment to the lessor on a regular basis. At the end of the lease period, the tenant can choose to purchase the equipment based on the predetermined purchase option, with purchase options as low as $1.00.

For start-ups and mature companies, leasing is a good option, and these companies rely heavily on equipment that needs to be replaced on a regular basis to sustain business growth. Our excellent sales staff can help you make these important decisions.

Advantages of lease financing:

- Retain credit protection working capital
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  - Improve cash flow
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  - Rental equipment is usually paid for at the time of use
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  - Protect equipment from obsolescence
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  - Lease financing applies to most capital acquisitions
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  - Rental payments may include installation, service, maintenance, supply, software and other "soft costs"
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  - Flexibility: Simple add-ons and upgrades to adapt to changing business needs

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