You might be used to utilising different types of finance outside of your business, but there are more options available to you that can make acquiring equipment and vehicles easier than ever. If you needed to purchase an emergency item for your home, you might look at getting a payday loan if you don’t have the funds. However, with your business, you have the option of leasing things to save you from paying for them outright. There are some misconceptions surrounding business leasing, so keep reading to find out which of these myths can be busted.
- My Business Is Too Small/Big
No business is too small to lease from a financer. The criteria can vary from lender to lender, but leasing is supposed to be an easy way for anyone to access the assets they need to help grow their business. If you’re a small start-up business, you might need specialist equipment to help you change into a bigger, more successful business. But if you don’t have the funds readily available, it can be hard to come up with them unless you get a loan. However, leasing the equipment can provide you with an easy way to have the equipment without getting into more debt than you need. Your monthly repayments will most likely cover any maintenance costs too, so that cuts down the worry if it breaks down.
If you’re a larger business, you might still benefit from leasing instead of purchasing outright. For example, if you’re looking for a fleet of vehicles, that’s a lot of expensive upkeep. But, with leasing the vehicles, you don’t have to pay anything extra if something goes wrong with them.
- Leasing Costs More
Each lender will charge a different monthly repayment amount, and it also depends on your agreed term, so some might be more expensive than others. However, that doesn’t mean you have to go for the most expensive option, nor will you definitely be paying out more than its original value. If you think about how much in total it would cost for you to purchase a piece of equipment, it could be in the thousands. But, if you choose to lease it, you might only spend a few hundred each month on it. This then frees up the cash you would have used to pay for it outright and feed it into your business.
- It’s Too Difficult To Get Business Leasing
Applying for business leasing is pretty similar to applying for other forms of finance. You can expect to fill out an application form and answer questions about your business. Some companies may have more lengthy applications if the item is of a very high value, as they need to be careful who they lease to. Some may require additional documents like bank statements, but these should be easy enough to get hold of.
- I Can’t Claim Ownership
You might think that leasing an asset doesn’t give you ownership over it and that once your lease is up, that’s it. However, some companies will give you the option to purchase the item at the end of your agreed term. It will normally be for a cheaper price than its retail one too, so you can save money in the long run. On the other hand, if the lease doesn’t allow you to buy it, is it critical that your business owns the asset, or can you renew your lease with the lender? Leasing can give you maintenance cover and even the chance to upgrade when your term ends.
Business leasing can give your business the opportunity to access equipment that you might not be able to purchase immediately, so it’s worth checking out the options available to you.