Leasing your business equipment is an important decision. Based on your budget, capital and employee needs, leasing can be a great way to save money and hassle of owning major office equipment.
Whatever equipment you decide to lease, considering the first steps, knowing your budget and finding the right company to work with is important. Let these considerations guide your first steps toward leasing your business equipment.
Your small business is important. Let our small business legal center give you a hand.
First considerations before you choose a business equipment lease When deciding to lease your business equipment, you first have to look at your budget. Determine what equipment you want to lease and how much you want to spend on the lease agreement or contract.
Equipment is integral to running your business or office successfully-and giving your employees the tools they need to do their jobs as efficiently and effectively as possible.
Think about these positive considerations in leasing equipment:
Less initial expense Tax deductible Flexible terms Easier to upgrade equipment Of course, there are also some disadvantages to leasing equipment, including:
Possibly higher costs Lack of ownership Lease obligation Your business might also consider finance leasing, which will give you ownership of the equipment after the lease is paid in full. Remember to lease equipment within your budget and inquire with companies offering free quotes and competitive rates.
What equipment to lease and for how long Now that you've made the decision to lease your business equipment , it's time to decide what you need and what lease agreement will work best for your business' budget. Understanding your parameters for leasing will help keep the process efficient.
Fortunately, there are several companies who can help businesses of all sizes lease their equipment. When deciding what to lease, the U.S. Small Business Association advises to keep a few things in mind:
Will the product be obsolete soon? Will leasing be a financially sound choice over financing? Can you train all employees on the leased equipment? According to Tech Inc., leasing agreements for business equipment usually run about three years, which is equivalent to the changes in technology. This means that many business owners are refreshed with the most up-to-date technology when its time to update a lease.
Not sure how much you can spend? Online calculators can help determine different variables in leasing vs. buying equipment. If you're interested in building equity in the machine, the U.S. Small Business Association recommends asking your leasing company about financing options.
Choosing equipment that can be easily operated by most in your office, particularly if you have a limited IT department, is usually in your best interest.
Where to find business equipment Leasing your business equipment is an important step in keeping your business running efficiently, and once you've made room in your budget to start a lease agreement, you need to ask the next question: What company should you choose?
Because leasing is such a preferred option for many small businesses with the continual upgrades of technology, there are many options available.
If you like to keep your business local, search for business equipment leasers in your area. The Better Business Bureau is a great resource to turn to for a list of accredited businesses. Remember, there are various avenues and companies for leasing equipment:
Captive leasing company-Provides leasing to its parent company or dealer networks Independent leasing company-Provides funds and gives directly to a client business, including banks, equipment lease specialists, etc. Brokers-Will deliver lease to the bank or financial service that agrees to finance the purchase What makes a good business lease contract Leasing agreements for business equipment are much like credit card applications and often are very easy to obtain. Negotiating lease agreements is possible, too, when you inquire with your broker or leasing company.
When it's time to sign off on a good contract, keep in mind:
Your allotted budget for the equipment Terms and lengths that are comfortable for you The costs and benefits of productivity Contracts are easy to find because many companies offer business equipment leases. You can even start building a business equipment lease contract yourself using our helpful resource.
Regardless of what kind of equipment you're considering, be sure to help yourself by learning more about various companies and brokers on the Internet. Take advantage of online resources such as our small business legal center to help you get started.
This article contains general legal information and does not contain legal advice. Rocket Lawyer is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer .
