As you start your business and get your daily operations in place, consider using office equipment leasing for furnishing and decorating your office and for the computers you will use in your office. Office equipment leasing is a loan that a business owner will make with a lender. The lender is a company that buys and owns equipment for office supplies and for the business owner to rent or lease. This lease will last for a specified number of months and has a flat monthly rate. This will help your business create business credit and increase cash flow. The Equipment Leasing Association of America did a nationwide study that states approximately 80% of U.S. companies use equipment leasing for their office and machinery.
Finding an office equipment leasing company is a very simple thing to do. Any office equipment business can offer you a lease option. Most office equipment leasing companies however do not offer you the finance side of the lease. Office equipment leasing companies that are selling or leasing the product will refer you to another company to finance your lease agreement. To avoid being damaged by high rates or spending too much money, getting another opinions or other quotes will only benefit you and your business.
When working with the leasing company and your agreement for your office equipment leasing, ask the person you are working with if they are a broker. Working with a broker is not always bad, but you need to make sure that you ask the standard questions to make sure your company is getting the correct financing for your lease. A broker is someone who structures the deals for your office equipment leasing and then gets the financing in place. When a broker does this, they are putting the leasing company they work for on the line. That is why you, the business owner, should make sure you know everything about your lease agreement.
Whatever type of business you are, you can lease virtually anything you need for you office. You can lease furniture, computers or machinery. Before you make the decision to use office equipment leasing for your office, take in consideration how much product you are going to get. For example, if you are going to get one computer for your office, buying one computer will in fact save you money rather than leasing one computer. But if you are planning on getting a number of computers, office equipment leasing is a huge option. You will have a longer period of time to pay your lease payments and the rates will be lower than going thru a banking institution or credit card company.
An option that leasing companies will offer you is a balloon payment. This is a loan that will require you to make small monthly payments with one large, balloon payment, at the end. If you do have the cash flow to make the balloon payment, you will end up paying extra fees and could possibly pay more than the office equipment you leased. Double check the agreement for those small fees and big fees.
There are many lease agreements that you can find yourself signing for your business. As mentioned above, take the time to read and ask questions about your office equipment leasing agreement. A couple of advantages you will have with a lease agreement are:
Office equipment leasing does have some great advantages, but along with those advantages comes some disadvantages. Some disadvantages to look for are:
Corporate Credit Concepts specializes in office equipment leasing. For more information about office equipment leasing and how it might benefit your business, please CLICK HERE for a free phone consultation.