Commercial equipment leasing could be a profitable choice for businesses with limited resources planning to invest in cutting-edge technology to expand their productivity.
Despite the rising popularity of leasing, there are various myths people often believe about leasing commercial equipment. If you are planning to apply an equipment lease in Abbotsford and Surrey, its better advised to understand the myths revolving around them. Some of the most common ones include:
Myth 1: Leasing is expensive
Leasing is sometimes viewed as an expensive alternative to purchasing equipment. In contrast, leasing is as competitive, if not less expensive, than traditional finance options. Depending on the lease structure, businesses may also benefit from tax breaks, substantially lowering the overall cost of equipment.
Myth 2: Leasing is not good for business
Another misconception is that leasing can only be used for non-core assets. Leasing vital equipment rather than purchasing it is mistakenly seen as a corporation in financial distress. However, this is not correct. Leasing works well for any type of core or non-core equipment that is used on a regular basis or requires frequent modifications. Flexible lease agreements give businesses all the benefits of leasing while ensuring that they can eventually retain the equipment and continue to use the asset even after the lease expires.
Myth 3: Leasing is not for all kinds of equipment
Companies frequently believe that leasing is only available for vehicles, laptops, and specialized equipment, which is not the case. Leasing is applicable to all types of equipment, both short-term and long-term. While leasing is important for autos, it is also an attractive financing option for businesses wishing to invest in manufacturing equipment with longer life cycles.
Myth 4: Leasing comes with no flexibility
Equipment leasing is a flexible arrangement that allows businesses to finance up to 100% of their equipment costs with no down payment. Leases can be tailored to include repayment modules that match income streams. In fact, leasing allows for greater operational flexibility than other financing choices, such as a loan. At the end of the lease term, depending on the nature of the contract, organizations can choose to purchase the equipment, renew the lease agreement, or return the asset to the lessor.
Myth 5: Leasing is another form of financing
Leasing is much more than just a finance option. Unlike typical loans, leasing businesses provide a variety of services in addition to extending funds for the purchase of equipment. Leasing businesses handle the administration and payment of purchase orders, as well as the entire logistics of retrieving the equipment at the end of the lease period. They also offer online reporting solutions that increase transparency, flexibility, and control over leased assets.
If you are looking for a reliable commercial leasing company in Abbotsford, rely on none other than Sandhu & Sran Leasing & Financing. With over years of experience and a wide lender network, we are here to help you secure a flexible leasing deal that saves you money and provide hands-on access to the equipment you need.
