Equipment leasing can be an excellent alternative financing option for small businesses that want to maintain a consistent cash flow. If you have ever taken out a loan to purchase a large and expensive piece of equipment, you know how much that can hurt your overall business budget.
Equipment leasing gives you the chance to use the computer, vehicle, or other machinery while it’s new and performs the best. You simply make payments towards the lease until the end of the contract. At that point, you can renegotiate a lease on the same item, purchase the equipment outright, or start a new lease with a different item.
Ask These Questions to Ensure You Receive the Best Equipment Leasing Terms
The company you choose to lease equipment from should have a detailed understanding of how your industry operates. Understanding the products you are likely to lease and how you will use them in your business means that the leasing company cares as much about your success as its own. Here are some other questions you can ask the leasing company to ensure you feel confident with your choice:
- What type of support does your leasing agent offer during and after the sale?
- What kinds of lease terms can you offer me? Are you open to any type of negotiations?
- Can I buyout the lease at the end of my contract term if I am still interested in purchasing the equipment?
- Who pays for repairs if something on the equipment breaks during my leasing contract?
You should also have a good idea of how you intend to use the equipment and how the monthly lease payment fits into your budget before pursuing equipment leasing. Kasher Capital is here to help if you have additional questions or would like to complete an application to start leasing business equipment today.