Running a business is not at all busy, especially when it’s a start-up. There are numerous tasks that you handle all alone. At one point, you will have to prepare the marketing strategy and at another, you will be dealing with your clients. You will have to wear many hats when you are a start-up. And, the most important part is arranging finance for your business.
Even, if you are starting on a small scale, there will various business expenses. From buying or renting the property to purchasing all the basic equipment and other infrastructure, you will need a significant amount of money. Apart from the capital needed for investment, you will have to make several purchases such as:
- Laptops, desktops, mobile devices for the working staff
- Hardware peripherals like printers, copier
- Setting up internet connectivity
- Setting network
- Facilitating data storage and security
- Time to time up-gradation
The cost-effective option of LEASING
Now, if you do not have enough funds to purchase all of them, then you could look for leasing. Yes, you heard it right! For start-up businesses, leasing equipment and other hardware products can be highly beneficial. Instead of completely buying the product, you can get it for a certain period.
Leasing equipment can give a huge boost to your business growth. It provides a great opportunity to acquire the latest equipment without paying the full cost. And, the cost can be managed with nominal funding. For this, you can easily approach a direct lender and apply for small business loans without guarantor. You can arrange the funds immediately without going through any hardcore lending regulations.
Here, in this blog, we will be enlisting some of the major benefits that your business can get by leasing. So, let us get started.
Main benefits of equipment leasing
One of the biggest benefits of equipment leasing is that it can help you save a lot of money. Rather than buying all the equipment, you can use it at a cost-effective price. Now, you can focus the funds on other parts of your business such as marketing, production. It will ultimately help in increasing your overall productivity and enhancing your service or products quality.
|Better budgeting and management of cash flow|
Equipment leasing makes it easy for budgeting as you will get all the latest equipment without making the complete purchase. These are the two ways how it can help your business with better budgeting:
- Most leasing is done on a contract basis where the monthly payment is done. So, you will know how much expenses you will have to face every month.
- Provides flexible terms where you will get the option of skip payment. Also, you can structure the lease term around your business’s seasonal cash flow.
- Easy monthly instalments enable you to make the payment in smaller chunks.
|Benefits on tax|
If you are taking equipment on lease, then you can get huge benefits on tax. The lessee can claim that the cost of leased equipment as business expenses. Therefore, this can overall help you in by reducing the company’s income.
Other than that, accounting for the leased equipment will be quite easy as compared to buying the equipment wholly. The financial statements can be easily arranged as you will be making regular payments.
|Use of latest equipment|
Let face it! After you have purchased all the equipment for your business, you are not going to replace them for a few years. However, the technology is advancing at a rapid pace and new and innovative tools are arriving in the market. Thus, it will not be financially possible for you to upgrade your office IT infrastructure every year, especially when you are a start-up.
Leasing, on the other hand, gives you a great opportunity to get all the latest equipment and that too at a cost-effective price. Even, if you don’t have enough savings or funds, you can easily make the payment by using loans for bad credit with no guarantor. This can be helpful if your credit score is not up to the par value. Wrapping up, these were the major benefits that leasing of equipment can provide to your business. Overall, you must also check the tools that you need for a longer time and the one for temporary use.