Equipment Leasing

Equipment leasing business is involved in buying equipments from established manufacturers and other reliable sources and leasing them to customers in need, charging a fixed monthly fee during the period of lease.

Leasing deals with all major business fields ranging from hospitals and hotels to laboratories and other small businesses. By opting for equipment leasing business, you are not required to spend any amount as down payment while buying the equipment.

The various benefits a business can enjoy by opting for equipment leasing include

• Capital conservation - It is always better for one to lease equipment than buying it because of the risk of depreciation.
• Conservation of credit lines - Your purchasing capacity is not affected as there is no initial cost upfront.
• Fixed rate lease payment.
• Deduction of tax - Lease payments don't qualify to be taxed.
• Easy financing of leased equipment.
• Easy updating from obsolete equipment.
• Effective management of your increased business cash flow and no more budget limitations.

All types of business use equipment leasing finance their projects. More than 80% of Fortune 500 companies use equipment leasing as a way to free up their working capital. If you have on-going receivables and you want to grow your business but are short on cash, then you may want to explore the idea of using equipment leasing to expand your business.

Companies can benefit from equipment leasing in a number of ways including a low down-payment, tax incentives, fixed rate financing and preserve cash. While some leases may require a down payment, there are many lease programs that offer flexible terms. With online equipment financing companies on the rise, you can shop for an equipment leasing company that best fits your situation. If preserving cash is your main objective, then equipment leasing becomes even more attractive. With this type of financing arrangement you will avoid a large lump sum payout while still getting the benefits from the equipment.

What about tax incentives? After all, who is not looking for a way to cut their annual tax expense? There are many equipment leasing programs and leasing companies that can help you understand what tax advantages are available within your industry. If you are new to commercial leasing, then you may want to speak to the leasing company about the advantages of fixed rate versus variable rate financing.

Now that you are aware of the advantages to leasing equipment, let's take a look at a business scenario. An established local newspaper needs to rapidly move to an online publication. After investigating their options, they quickly determined a content management system (CMS) would give them web page publishing capability and swiftly make changes to their online newspaper. When comparing a large outright purchase to an affordable monthly installment, the choice was clear to lease the software and equipment.

Advantages of leasing medical equipment

Doctors starting a new practice might have modest capital and therefore not be able to afford to buy the best, new equipment. This will certainly hamper their business prospectus. Who will go to a new doctor with obsolete equipment? By leasing, the doctors can get the latest equipment and can use their cash to run the practice efficiently.

Large hospitals might have the capital required to buy the latest equipment, but they are in danger of getting burdened by the obsolete, costly equipment in near future. By leasing, the risk of ending up with an obsolete machine is minimized, as you can build, upgrade, or add-on to the lease. In the process, hospitals also save lot of cash, as there is hardly any upfront amount required for leasing the medical equipment. As a result, the hospitals can expand their business with the saved money.

Medical equipments available on lease

According to a study, the medical industry in the United States leased approximately $ 3 billion worth of equipment in the last year. Examples of the equipment that can be leased are blood analyzers, CT scanners, heart monitors, and X-ray machines.

In the medical industry, businesses need to stay equipped with the latest machines. Therefore, in such a technologically driven business, leasing medical equipment is a more profitable choice than purchasing it.