As 2019 winds down, it’s that time of year to make resolutions for 2020. Business resolutions are just as important as personal ones if you’re an entrepreneur. If you’re considering financing an equipment lease to start off a new year and a new decade, here are 10 helpful to stand by.
1. Know Your Budget
When you have your own business, it’s of the utmost importance to know your budget and stick to it as best you can. Global Financial & Leasing Services (GFLS) makes this easier by providing you with predictable monthly payments to help manage cash flow. When it comes to the best ways on how to finance an equipment lease, predictability is one of the most important elements to keep in mind.
2. Don’t Pay in Advance
You wouldn’t pay your employees four or five years in advance, right? So why should you pay for your equipment in advance? A business equipment lease allows you to pay for it as it earns you money. This frees up more money for you to use elsewhere in your business.
3. Give Yourself Options
At the end of your lease, GFLS lets you choose one of the following: purchase the equipment at the stated dollar amount, continue your lease at a lower monthly rate, or simply return the equipment with no further obligation. This way, if you love the equipment, it can be yours or you can continue to use it, or if it’s not working out for you, you can return it.
4. Free Yourself to Use the Newest Upgrades
With the speed of technology these days, the best equipment available now may very well be obsolete next month. When you lease with GFLS, you can save your capital and put yourself in a position where you’ll be able to purchase or lease newer, more high-tech equipment when you want, keeping you competitive.
5. Keep Your Starting Costs Low
Why waste money on a huge down payment? With GFLS, we often require only the first payment in advance to order your business equipment. This isn’t the case with other equipment lease financing companies.
6. Don’t Wait Around for Approvals
Your time is valuable. You shouldn’t have to wait to learn if you’ve been approved to lease business equipment. With GFLS, you can get your completed application approved the same day—or within 48 hours for more complicated transactions.
7. Avoid Extra Costs
Most traditional financing sources will not pay for extra costs such as installation, freight, extended warranties, etc. However, we can often provide 100% financing by including a specific amount of these soft costs in your transaction.
8. Claim a Tax Deduction
Did you know that your lease payments can be deducted as a business operating expense in most cases? Doing so can reduce your taxable income.
9. Keep Cash on Hand
By leasing business equipment and avoiding a sizable cash outlay, you can conserve your on-hand capital for more important uses—such as inventory, employees, and advertising. This will advance your business and help it grow.
10. Improve Business and Personal Credit
When you purchase business equipment with borrowed funds, your credit lines with your lender will be significantly reduced. However, when you lease with Global Financial, you can conserve lines of credit for emergencies or other purposes, and can subsequently establish a separate line of credit and maintain an excellent credit history.
When you’re looking for the best way to finance an equipment lease, Global Financial & Leasing Services has you covered, and has your company’s best interest in mind whether starting a new year or a new decade. To learn more or get started today, simply fill out our credit application.