What is Equipment Rental or Leasing? This allows a business to get an equipment from a vendor or a rental equipment company, Strongbox, which offers quality construction equipment for a specific period of time. This requires the company to return the equipment, to renew the lease, or even buy the equipment at the end of their term.
What are the basics of Equipment Leasing?
This allows businesses especially to rent the equipment needed for a specific period of time. This requires monthly payments for a predetermined number of months and once the term ends, a business will have the option to renew the lease, buy the equipment, or end and release the equipment. Let us review the scenarios where equipment rental makes more sense than buying.
What are the benefits of Equipment Leasing?
- You need to stay on the cutting edge of modern technology. This allows the business to change out its equipment often instead of getting by with using the same equipment for decades and will allow a company to equip with the latest hardware or machinery.
- You will need to spend capital in other areas. Rental equipment allows a company to provide for other urgent needs for the business instead of spending for equipment upgrades.
- You will not need the capital to make a large purchase. Most rental equipment company offer low down payments. Lease payments also has lower total expense than the monthly payments attached to a business loan or line of credit.
- You have old equipment you might want to sell. A lease helps especially if a company is looking to upgrade its existing equipment but does not have the time to sell it since plenty of rental equipment companies will offer credit on old trade-ins.
- You have tax incentives advantage. Leasing equipment comes with built-in financial incentives – tax credits, since leasing is often tax deductible.
- Fixed financing rate applies instead of a floating rate. Equipment rental offers flexibility when it comes to financing rates and a fixed rate for the term of lease.
- You don’t need to keep the equipment for long. Leasing is the best option if you do not plan to use the equipment for long haul or unsure whether it is the right piece for your needs.
Leasing equipment has only right or circumstances and not right or wrong answer. If your business happen to have any of the scenarios above, leasing an equipment might be the best choice you have at the table. Check your goals and choose the right company to deal with your equipment needs.