The success of equipment leasing or purchasing is mostly figured out by a business’ financing approach, making this one of the most essential steps in the process. But, while an equipment lease commonly represents the most financially rewarding between the two options, it is recommended that businesses and individuals inspect their fortune with the other alternative.
Depending on the receivables, credit report and cash flow, you will for sure find a better offer.
Prior to you beginning the “ selection” process, it is important to first answer the following guide questions:
- What is your business monthly spending plan? Leasing provides a significantly lower month-to-month payments in contrast to purchasing. However, it still needs to be factored into your regular monthly expenses.
- How quickly will the device become obsolete? Technology is more likely to end up being outdated faster than any other industry in the world. Consider this before deciding on whether a trade-in makes sense for you or not.
- How long will the equipment be used? For short-term use, leasing is usually the most cost-efficient way for companies to go with. However, if you’re planning to make use of the equipment for 3 years or more, a standard line of credit or loan might be more helpful than a lease.
The list of equipment that gets approved for a lease is virtually endless. However, there are a couple of major conditions to take into consideration, such as the cost of purchase:
An equipment lease allows businesses to acquire machinery and equipment and machinery that are of the highest monetary value. Well, this could vary from expensive single products to smaller sized products like software licenses and business equipment pieces.
For this reason, it’s uncommon to find a lease contract that amounts under $3,000 and numerous big loan providers have a minimum purchase of $25,000 to $50,000.
If you are going with a lease, you could expect the process to include the following steps:
- Fill-up an equipment lease application. Make sure that you have all of the financial information needed for both the company and lessor as this might be required after initially completing the application.
- The lessor processes your application and alerts you of the result. Normally, this takes place within 24 to 48 hours after sending the application.
- As soon as the approval has been received, you should examine and wrap up the lease structure, including the fixed-rate APR and the regular monthly payments. After this, you need to sign the documents and re-submit them to the lessor together with your first payment.
- When the lessor has received and accepted the signed documents and the first payment, you are immediately notified when the lease takes effect, the date by which the equipment is to be delivered, as well as, the dates for the needed equipment training. Funds are launched after 24 to 48 hours directly to you or to the lessor you are acquiring the equipment from.
There are lessors who might not need financing options for applications that range from $10,000 to $100,000. For values between $100,000 to $500,000, you will have to anticipate the lessor’s need to require complete financing documents.
If you plan to get copiers for your office in Augusta, you can opt to buy copiers or lease copiers in Augusta. We can give you the option to get the copier that you want. You can contact our local copier leasing services department in your location.