Would a Lease Buy Back Be Smart For Your Business?
Any business owner understands that in order to successfully produce the goods and services customers require, you need the right tools and equipment. The challenge is, equipment can come at a high cost. If you’re struggling with cash flow and with your business finances in general, affording the necessary equipment and managing the other aspects of your company can be a challenge. This is where equipment leasing can come into play. Many organizations use this method to get their hands on necessary tools and supplies without having to jeopardize their bottom line. Check out whether this solution is a viable one for you.
What it Is?
Equipment leasing isn’t new; it’s been a popular way for companies in all sectors to pay for reliable, high-quality equipment. Here’s how it works: With this method, you sell your current equipment to a leasing company for a lump sum of cash. The leasing company will then turn around and lease the equipment right back to you. This allows you to pay for the equipment over time but to also hang onto it and have the immediate cash you need. You can see it as a win-win for you and the leasing company.
If you elect to apply for a small business loan or other bank financing, you’ll have to make a down payment. You will eat away from your own profits trying to make this payment. Often, it may be too much for you to bear. With equipment leasing, a down payment isn’t necessary. Why not buy back this equipment that you already own? This allows you to keep your finances in good order while still using the vital equipment for your operations. Another thing to keep in mind is that when you lease your equipment, you won’t have to worry about handling repair and maintenance as you would if you owned it. Your equipment will break down and have issues at some point. When this occurs, inform the leasing company, and it will pay for the service.
Is it Right for You?
This is the important question you must address. There are many ways you can try to improve your finances and still have the essential tools for your operations. If you don’t have enough on-hand cash for a down payment, or if you don’t want to go through the lengthy loan process, equipment leasing is a good move for you and your organization.
Consider the benefits of this financing method. If you’re ready to go for it, contact a leasing company today.