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Equipment Leases
Equipment Leases
Leasing is a simple and flexible way to get the assets and equipment you need to run and grow your business, as opposed to paying cash, taking out a loan, issuing debentures, and other forms of financing. Leasing is defined as a contractual agreement in which the owner of an asset grants the user the right to use the asset in exchange for a number of specified payments over a specified period of time (Lease Term). The Lessor is the owner of the equipment, and the Lessee is the person who uses it.
A Lessor can be an individual or a company, and in most cases, it's a financial services company like Raptor Financial Group.The Lessee can either purchase, return, or continue to lease the equipment at the end of the lease term, depending on the structure of the lease. Keep reading to learn more about the advantages of leasing, the types of assets you can lease, and Raptor Financial Group's wide range of flexible leasing options.
Leasing is a simple and flexible way to get the assets and equipment you need to run and grow your business, as opposed to paying cash, taking out a loan, issuing debentures, and other forms of financing. Leasing is defined as a contractual agreement in which the owner of an asset grants the user the right to use the asset in exchange for a number of specified payments over a specified period of time (Lease Term). The Lessor is the owner of the equipment, and the Lessee is the person who uses it.
A Lessor can be an individual or a company, and in most cases, it's a financial services company like Raptor Financial Group.The Lessee can either purchase, return, or continue to lease the equipment at the end of the lease term, depending on the structure of the lease. Keep reading to learn more about the advantages of leasing, the types of assets you can lease, and Raptor Financial Group's wide range of flexible leasing options.
Benefits of Leasing
Almost any type of organization, including sole proprietorships, partnerships, corporations, government agencies, religious and non-profit organizations, can benefit from leasing. Almost anything associated with your business operation can be leased, including capital equipment, hardware, software, and even soft costs such as installation and consultation. Because most businesses make money by using equipment rather than owning it, eight out of ten choose leasing over cash or bank loan purchases of equipment. Read on to know why and how leasing can give you a competitive advantage to help your business grow.
FLEXIBILITY, CONVENIENCE, & SPEED
Banks and other financial institutions are known for moving slowly, dragging out the application process and finally providing an answer after many days of review. Equipment leasing moves at the speed of business, with online applications being approved or denied in seconds. The lease documentation is also simpler and more flexible, and you can finance 100 percent of the associated costs, including service, shipping, and installation, spread out over the lease term.
STAY UP TO DATE WITH THE LATEST EQUIPMENT
Outdated or obsolete equipment is frequently shuffled downstream or stored away until its value is less than the costs of selling or disposing of it. Leasing has a built-in termination date, the lease term, that can be calculated to correspond to the equipment's productive life, allowing you to get the equipment you need today and use it cost-effectively until it no longer meets your needs. Equipment can be upgraded at the end of the lease, allowing you to avoid dealing with outdated and obsolete equipment. Lease financing should be considered if your competitive advantage is based on the latest, most sophisticated hardware. Leasing can help you keep up with your changing business needs, no matter how quickly they change.
MANAGE YOUR CASH FLOW EFFECTIVELY
Leasing is a great option for businesses with predictable or seasonal cycles because it allows you to customize your payment needs. You won't have to pay for your equipment until it has paid for itself with a well-structured lease. Furthermore, unlike the variable interest rates offered by bank loans and credit lines, fixed rate lease payments allow you to accurately predict equipment costs and cash needs.
CONSERVE YOUR CAPITAL & BORROWING POWER
Leading-edge equipment assets depreciate faster than ever before in this era of rapid technological advancement. Traditional bank lines are ideal for covering day-to-day business expenses, but not for long-term capital investments. Leasing is a form of credit and financing that allows you to get what you need when you need it without having to worry about depreciation. Furthermore, because no money is borrowed, leasing will not reduce your borrowing power, leaving your existing credit line healthy and available for your company's growth and other unforeseen expenses.
OVERCOME BUDGET LIMITATIONS
Spreading your costs out over a lease term can help you stretch your budgeted dollars to get the quality and quantity of assets you really want, rather than just the bare minimum.
TAX BENEFITS
Lease payments are typically considered an operating expense and are made from pre-tax earnings, potentially providing tax benefits. Please consult with your tax and legal advisors to determine the most tax-efficient lease for your needs.
Types of Leases
Almost any type of organization, including sole proprietorships, partnerships, corporations, government agencies, religious and non-profit organizations, can benefit from leasing. Almost anything associated with your business operation can be leased, including capital equipment, hardware, software, and even soft costs such as installation and consultation. Because most businesses make money by using equipment rather than owning it, eight out of ten choose leasing over cash or bank loan purchases of equipment. Read on to know why and how leasing can give you a competitive advantage to help your business grow.
