You’ve heard the adage: You have to spend money to make money.
 
Equipment leasing turns that idea around with financing that can save you money and give you more flexibility while keeping your business on the cutting edge.
 
“Many people think of leasing big-ticket items like million-dollar construction or medical equipment,” said Alan Sikora, CEO of First American. “But you can lease just about anything your business needs.”
 
What does your growing business need? Maybe you need more trucks to deliver your goods to clients. Perhaps your older computer equipment needs to be replaced with faster laptops and more networking equipment.
 
Have you moved or expanded? You can lease your new office furniture and equipment. You can even finally replace that buggy software with a newer version that would enhance productivity.
 
Even if you have the luxury of extra cash reserves, consider these six equipment leasing benefits before writing a big check.
 

1) Save capital: Most organizations do not have massive cash reserves. If they do, there are plenty of other ways to use it, such as hiring new employees, stocking more inventory or expanding a facility.

2) Avoid the sinkhole of obsolescence: Should you pay $1 million in cash for technology that will change in a few years? At the end of a lease, you can return the equipment and get something more advanced, keep leasing if you are still using it, or buy the equipment if you choose.

3) Remain flexible: A purchase commits you to one particular technology or business strategy. This scenario is especially relevant for purchases that involve your core business offerings. For example, while you might be able to live with aging equipment, if your company invested in machines for protocols that are no longer in demand, your ROI may suffer. Leasing lets you adapt as your industry evolves.  

4) Reduce your tax liability: If a lease is structured correctly, you may be able to expense 100 percent of the payment. On a conventional loan, only interest is deductible. Consider the financing options but a lease might bring tax advantages.

5) Shift a capital expense to an operating expense: As the year progresses, many companies find their capital budgets bursting at the seams. And yet needs and opportunities arise with little regard for those seams. A lease gives you a way to get the equipment you need without blowing your budget. 

6) Gain predictability: Some investments—like complex technology implementations—involve unpredictable costs. A lease gives you fixed, predictable monthly payments that are spread out over time. This means fewer surprises and better cash flow overall.

 
Find the Right Financing Source 

While price is important, savvy organizations look to price and beyond when seeking the right finance company.
 
“You want to work with someone who can provide you with a fundamentally better financing experience,” said Sikora.
 
How can you tell if someone can deliver?

• Work directly with a bank-backed leasing company that has the resources of a large financial institution, but the flexibility of an independent organization.

• Look for transparency and clarity. All terms and fees should be in writing. If something is not clear about the contract, speak up.

• Service matters. If your financing source is still doing business the way they did it 20 years ago, at their convenience, with paper and spreadsheets, they are wasting your time. You deserve videoconferencing on your schedule, e-signatures, and convenient mobile apps to manage equipment. 

 
See how we are helping growing companies like yours get the resources they need to take their businesses to the next level: http://fatechnologyfinance.com/growthsolutions