Are you interested in learning more about business equipment leasing? Does the rigidity of owning expensive heavy equipment seem unappealing? There is an alternative to buying your business equipment. With business equipment leasing, you can pay for the equipment you need on a monthly basis without needing to tie up capital in large down payments and origination fees. In addition to our many popular alternative lending offerings, RJ Funding Services is proud to provide business equipment leasing programs to businesses in diverse industries—especially manufacturing and fabrication.
Now that alternative lending programs have become more popular, many entrepreneurs have questions about their funding options. Following are answers to common questions about business equipment leasing.
What is business equipment leasing entail?
Business equipment leasing entails working with a broker to establish an agreement on the terms of renting equipment like heavy machinery. The lease is paid on a monthly basis. There is no down payment required or origination fee as one would encounter with a traditional loan. The length of the lease is predetermined as well and is normally about three to five years. At the end of the leasing agreement, there might be an option to buy the rented equipment at a fair rate (adjusted for depreciation).
What are the benefits of leasing business equipment?
Depending on your situation, there are quite a few aspects of leasing business equipment that you might find beneficial. Many business owners enjoy that they do not have to tie up capital in the procurement of expensive equipment. Others enjoy that the cost of leasing equipment is a tax write off because the lease is technically considered an operating cost. Another benefit to renting business equipment is that entrepreneurs can maintain a competitive edge by using the newest equipment available every few years.
How do I know if alternative lending is right for me?
If conventional financing does not meet your business objectives, you might want to consider your alternative lending options. There are many types of financing programs available that can meet your needs.