The rate at which mobile computing and printing technology advances continues to accelerate. This pace of innovation puts at risk companies which delay investing in business equipment which maximizes productivity and reduced cost. However, expensive investments can be hard on cash flow… luckily, this is one business area where astute finance strategy can directly benefit the business.
Equipment leasing is a ‘have your cake and eat it too’ strategy. Instead of laying out large sums of cash for new equipment, your business can use a technology leasing program to gain immediate access to cutting edge tech. Protect your balance sheet, while gaining operational improvements.
See Our Quick Explainer Video On the Benefits of Equipment Leasing
Companies Confront Challenges in Refreshing Tech Equipment
There are common difficulties companies face when contemplating a major technology refresh. Available cash, working capital, and the ability to fit the purchase within a capital budget are often the largest issues. Fortunately, the financing option can resolve these issues for you.
How Do You Benefit From a Capital Lease?
There are many benefits to a leasing program. Some of these include:
- Don’t delay essential and strategic investments in new mobile computing, scanning, or printing technologies which can provide immediate benefits to your business
- Don’t parcel out equipment acquisitions over years in order to minimize cash impact – get the benefit of a complete tech refresh immediately
- Pay your monthly payment out of operating cash flow instead of tying up precious cash in the equipment asset.
- You may be able to classify the monthly payment as an operating expense, and keep the leased equipment off your balance sheet (check with your accountant).
- Tie the capital lease term together with the useful life of the product, and upgrade to cutting edge tech upon lease expiration.
Never A Better Time For Equipment Financing?
Leasing equipment has become a standard practice for many leading companies. Options for equipment financing have become increasingly friendly to the business owner or lessee.
- A historically low interest rate environment translates to lower monthly payments. Obviously, lower payments translate to improved operating cash flow.
- The typical equipment lease agreement is easy and fast to execute – leasing transactions can be executed almost as fast as a traditional cash equipment purchase.
- The lease period will match up closely with the typical usage of the technology leased. This sets you up to stay current with technology improvements rather than falling behind with wholly-owned equipment.
- Choose from a fair market value or dollar buy-out leasing option.
Equipment Leasing Company Recommendations
Whether you are a large corporation or small business owner, CSSI can connect you with a lender experienced in technology finance for business equipment, many of whom coordinate with each equipment vendor used by CSSI. This will lead to a faster and smoother leasing process.
Contact CSSI using the form at right to discuss an operating lease today.