The leasing agent purchases equipment and then “rents” back to the business at a flat monthly rate for predetermined period of time. At the end of the lease, the business can purchase the equipment at fair market value or a price established at the beginning of the lease. It is possible to lease almost any necessary equipment for your business. Equipment leasing frees up excess cash to invest in other business priorities. It is also possible to easily upgrade equipment once a lease expires.
Advantages of Equipment Leasing
- Potential tax advantages
- Improves short-term cash-flow
- East of obtaining product, regardless of credit