March 1, 2008
How To Finance New Business Equipment
Every business requires equipment at some point. Your business may need computers, vehicles, manufacturing machines, factory equipment and is entirely dependent on the type of business you are running.
Imagine the business equipment needs of a simple business like a coffee shop, for example. You’ll need to acquire, in addition to business premises, one or more good quality coffee makers or espresso machines, tables and chairs for your customers, refrigeration units, storage units, a dishwasher and mugs and serving ware. That’s quite a list, and quite an outlay for a new business - all before you open your doors. There are, however, a number of different ways that you can acquire equipment and other assets for your business without having to part with your liquid assets by making payments up front.
Operating Lease
An operating lease allows you to acquire the equipment you need for your business without a large initial outlay. In addition, you get up to 90% of the resale value.
The advantages of an operating lease include:
- lower rental fees
- the ability to use the equipment without owning it
- there is no need to dig into other lines of credit to finance a purchase
- your rental fees may be deductible from […]
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