Benefits_of_Leasing_Equipment by saudfarooq

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									Title:
Benefits of Leasing Equipment

Word Count:
610

Summary:
Leasing equipment provides the lessee with all the following benefits of
utilizing the equipment without having to pay the up-front costs or
assuming the risk of ownership. A lease is one of the best ways for
businesses to stay on top of the development curve. With so many new
developments that occur (particularly in the technology areas) equipment
leasing is less financially expensive.


Keywords:
medical equipment leasing,equipment leasing,construction equipment
leasing,commercial equipment leasing,equipment leasing company,business
equipment leasing


Article Body:
Leasing equipment provides the lessee with all the following benefits of
utilizing the equipment without having to pay the up-front costs or
assuming the risk of ownership. A lease is one of the best ways for
businesses to stay on top of the development curve. With so many new
developments that occur (particularly in the technology areas) equipment
leasing is less financially expensive. Running a business means making
sound financial decisions that improve the condition and quality of a
business. Equipment leasing provides such a benefit along with:

      Minimal Cash Outlay
      Overcoming Budgetary Limitations
      Avoidance of Obsolescence
      Flexibility in Terms and Equipment
      Conservation of the Business’ Working Capital
      Increased Opportunities
      Tax Benefits
      Fast Applications
      100% Financing

The minimal cash outlay allows a business to conserve their own capital.
A lease also provides for servicing equipment failures. When managing a
large computer room, owning all the computer equipment would place not
only the upfront cost of purchasing the equipment, but also maintenance
and repair as needed. Businesses that conserve personal business capital
and lines of credit can handle the more mundane day-to-day expenses and
unexpected events.

Budgetary concerns over new equipment purchases can be circumvented
through equipment leasing. Operating budgets tend to be more flexible
than a capital budget. The lease terms can be as flexible as required and
are often negotiable on an individual basis. Lease terms are usually much
longer than a standard bank loan, which makes their payment terms even
better.

The ability to upgrade remains one of the best benefits of equipment
leasing. Businesses grow; technology changes and the needs of both can
change year to year. Equipment leasing allows businesses to benefit from
developments on both sides of the aisle. Lease terms may also be
structured to handle these changing situations.

Considering this multitude of benefits for equipment leasing, it’s not
surprising that more and more businesses are reaching out to lease their
equipment rather than purchase it. The benefits of leasing are not
limited to the computer industry or to large corporations. Small
businesses can benefit even more from equipment leasing than a large
corporation may.

In a contest of leasing versus buying, leasing wins most of the time.
Imagine the small business that houses only two employees. Their working
capital may afford a couple of PCs and some exterior accounts to host a
website. When a PC in the office goes down, if they are not leasing they
will need to replace the machine. In general, the cost of replacing a
standard PC is significantly lower than repairing one.

Small businesses need the ability to remain flexible, to upgrade and to
keep their machines in maintenance and up to date. Even more than their
corporate big brother, they need to know they will remain on the cutting
edge of the industry in order to make better business decisions. A small
construction company that has no access to certain types of equipment
will not be able to take on more challenging jobs. The graphic’s designer
that doesn’t have the equipment to support the latest software will find
himself or herself less competitive. An accountant that doesn’t have the
disk space to maintain growing accounts will have to turn away business.

Leasing equipment makes sense on a variety of financial levels, but also
on levels addressing future growth. The business that takes advantage of
these benefits are planning two steps ahead of their own niche market and
will likely avoid being trumped by their competition. So whether a
business is large or small, thinking ahead provides them with
opportunity. What is the best benefit a business can receive from leasing
their equipment? Opportunity.

								
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