Decades ago, leasing was something of a novelty. These days, it’s an essential part of business for many companies. If you need equipment such as computer systems, state-of-the-art tech, construction equipment, and other items, equipment leasing can be an incredible choice. How does this type of financing work and what are the advantages?
These days, leasing isn’t that different from a loan in structure. You make monthly payments and you get to use the equipment. Some leases even have options to buy the equipment at the end of the lease. Others are designed for you to start a new lease with a new piece of equipment.
The main difference between a lease and a loan is in the way costs are distributed. Loans focus completely on purchasing the equipment you want from the very beginning. They offer lower interest rates over a long period of time, which can save you quite a bit of money if you’re looking at 10 or 20 years.
One big benefit is that many leases don’t ask for a down payment. For heavy machinery and construction equipment, not having to come up with that 10–20% down payment can save you thousands of dollars at the beginning. For businesses that don’t have a huge bank account, this is a major advantage.
Also, leasing tends to have more flexible terms. It adapts well to small businesses and seasonal businesses. You can set up quarterly payment options, change the number of months you need, or choose a lower monthly payment amount. There are also bad credit options for businesses that wouldn’t qualify for a loan.
Another big advantage is being able to upgrade with practically no strings attached. At the end of your lease, you’re free to walk away from that piece of equipment and choose something new. That’s why any kind of technology often benefits from leasing; you can stay at the cutting edge.
There are leasing programs for most businesses. This includes small businesses and large corporations. It includes healthcare practices, construction businesses, and plumbing companies. There are even equipment leasing programs for startups and businesses with poor credit.
Andrés GuzmánOctober 4, 2023My experience was nothing short of outstanding. PRM exceeded my expectations in every way.
ARMY 4LIFESeptember 29, 2023They have the best customer service! They treat you like family 😊
Mari M VelazquezSeptember 27, 2023The best company to do your loans with! Highly recommend it 😊