Why more small business owners are turning to equipment leasing to finance their business

1. Why more small business owners are turning to equipment leasing to finance their business As a decision-maker in your business, weighing all equipment acquisition choices is a vital element not just to get the job done, but to make sure your business has the right equipment and working capital it will need to grow. With equipment leasing you do not need to be worried about using a large amount of your businesses working capital to purchase equipment. Instead, you can use a small amount of working capital to enter into an equipment lease and get the equipment you need. 65 percent of the best businesses lease equipment, based on an ELA survey. The top reasons these companies cite for leasing include consistent expenditures in budget management, increased cash flow, and the ability to have the most recent equipment. Another reason business are turning to equipment leasing to finance their business is because of its easy credit requirements. Not all equipment finance companies offer high risk financing. But sites like Leasefunders.com does! Many banks have turned their backs on start up businesses because of the high risk of them going out of business within 3 years of opening their doors. Then the banks made things difficult for business owners with credit problems. Either turning them down outright or offering them only a small fraction of the amount they needed. The right equipment leasing company can help both of these businesses obtain the financing they need And the choice for a growing number of small businesses is clearr: equipment leasing. Besides the resons stated above. What other are making the choice to use equipment leasing? •The payments can be regarded as a rental leading to a 100% cost write-off. At the end of the year you'd simply complete your payments and deduct them entirely as a cost. •Most leases don't need to be shown in your financial statement as a liability, because theoretically it's a contingent liability, and just needs to be shown as a footnote. This keeps your financial statement from getting overloaded with debt and is important if your lender lines require keeping certain ratios. •The biggest advantage, however, is that you need very little documentation to obtain a lease. Unlike a SBA loan that requires a full financial package. An equipment lease usually needs an application up to $50,000. •It generally requires smaller amounts of cash up front and monthly payments on your construction equipment leasing are usually lower compared to installment obligations, thus freeing up money and increasing the liquidity of your resources. Equipment leasing levels the financial “playing field” allowing small business to obtain cutting edge equipment that their competitors are using. While not draining their working capital.