When running a business, there’s going to come a time when you’re going to need financial help to grow.

One of the ways that you can do this is to take advantage of the many leasing options for your business.

Equipment leasing is one of the most popular with businesses, as it gives you access to high-tech, modern equipment to improve productivity and efficiency, without harming your cash flow or savings.

Much like payday loans that can help in a financial emergency, these leasing options mean you can make affordable repayments, grow your business, and boost your income. Read on to find out more about these leasing options.

Leasing In Business

When running a business, leases can come in useful if you need to purchase equipment or premises without having to spend a lump sum of cash you have saved, or so that your cash flow doesn’t suffer.

Leasing is a type of finance that many businesses turn to when trying to improve or expand their company, and can be used to improve productivity, resulting in increased revenue.

There are many types of leasing options available for businesses, no matter your credit score, or how long it has been operating – there are various options and repayment plans accessible to a range of businesses.

We’ll look at some of the benefits below.  

What Are The Benefits?

• Split the cost: You don’t have to pay a lump sum of cash upfront with a lease, which is one of the reasons why it is so popular. You can split the cost into affordable payments that suit you and your cash flow.
• High-quality equipment: Choosing to lease equipment means that you can benefit from high-quality technology that you may not be able to afford otherwise, meaning you can take advantage of improving your business operations.
• Improves productivity: Introducing new, high-tech equipment means you can benefit from increased productivity within the workforce and allows your business to run smoothly.
• Fixed repayments: A lot of lease agreements will come with fixed monthly repayments, and you can even spread the cost over a longer period to bring the payments down if necessary. This makes leasing accessible to businesses with a lower income.

Types of Leasing

So, if you think that business leasing is an option that you would like to take advantage of, here are three different types of leasing that you should research before making your final decision.

1. Finance leasing

This refers to financing a piece of equipment that you intend to use over three years or more.

This type of lease means that the customer takes on the risks and rewards that come along with ownership of the equipment – however, the equipment is never owned by them.

Finance leasing allows the business to keep the piece of equipment until the end of its life, and then they will be given a few options on how to proceed.

Businesses can either continue paying cheaper repayments, sell the asset and keep some of the money made from the sale, or give the equipment back to the lender.

2. Operating leasing

This type is different to finance leasing as it means the customer does not have to take on the risks and rewards that come along with leasing the equipment, and the timeframe in which customers enter one of these leases tends to be less than with a finance lease – they give businesses more flexibility.

One of the benefits that come with operating leases is that you can even upgrade your equipment throughout the term of the lease, or when the lease comes to an end, so even though you don’t own the equipment itself, you can benefit from high-tech equipment to enhance overall productivity.

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