Equipment Leasing - Business, Industrial and Medical

Equipment leasing is a popular alternative to purchasing equipment for a business. Approximately 90 percent of businesses cannot afford to purchase their equipment outright. Financing through loans and leases is available to help businesses afford the cost of needed equipment. With monthly payment plans that typically extend over periods between 36 and 72 months, businesses can concentrate on meeting cash flow objectives without worrying about the cost of equipment.

Almost every type of business needs specialized equipment in order to achieve success. Industries such as construction, medical, restaurant, printing, disposal, delivery, technology, telecommunications, materials handling, and manufacturing services rely on expensive equipment to perform their work duties. Business equipment that is often financed includes commercial vehicles, heavy machinery, printing machines, medical equipment, office furniture, technological equipment, computers, and software programs.

Benefits of Equipment Leasing

Equipment leasing is a desirable option because it allows businesses to test out different types of equipment before making a purchase. Leasing can also be advantageous for businesses with types of equipment that frequently change and improve over time. Computers and software programs fall under this category because the computer industry is constantly adapting. Leasing allows businesses to upgrade their equipment for the latest and the most effective models at the end of each lease term.

Equipment leasing can offer a variety of benefits for certain types of businesses. With leasing, businesses are capable of conserving cash and working capital, preserving credit lines, gaining tax benefits, conquering budget limitations, increasing productivity, and eliminating the chance of getting stuck with obsolete equipment. Initial down payments and rates are often lower for leasing as opposed to loan financing as well.

Specialized Types of Equipment Leasing

Certain industries will need to purchase large amounts of heavy duty equipment in order to function successfully as a business. For instance, heavy machinery and vehicles are a necessity for construction work. In the United States alone, construction equipment leasing amounts to over three billion dollars each year. Construction businesses need to lease cranes, tank trailers, bulldozers, jackhammers, cement trucks, dump trucks, and other construction trucks to perform successfully in business.

Obtaining medical equipment is a major concern for all types of medical practices. Different types of doctors, including physicians, dentists, veterinarians, and optometrists, need specialized equipment that is up-to-date and highly effective for medical practices. It is often a good idea to lease large medical equipment such as x-rays, lasers, heart monitoring equipment, oxygen equipment, blood analyzers, lab test equipment, and exam tables. These items can improve over time with medical advances, so equipment leasing allows doctors to upgrade their equipment every few years.

Alternative Financing Options

Equipment leasing is not always the best choice for some businesses. If you know exactly what equipment is needed and that you will use it for many years, it is often wise to purchase your own equipment. Purchasing equipment allows businesses to have complete ownership over the equipment and how it is used. Business equipment financing is available to help businesses afford to pay for these purchases.

Different types of loans are available for businesses who are interested in purchasing business equipment. Financing options include SBA loans, which are guaranteed by the Small Business Association, debt restructuring, lines of credit, fast commercial bridge loans, and working capital loans. Working capital loans are the most common and can be used for any purpose. They are commonly used for expanding a business, personal needs, payroll, and for purchasing equipment.