Equipment Leasing - A Better Financing Alternative

By Timothy Anderson

In today's highly competitive markets, where managing finances is a major concern for most businesses, equipment leasing comes as a valuable financing alternative. In the past, businesses often chose to purchase equipment as and when required for their growth. However, this had the effect of tying up capital and limiting expansion. However due to the tremendous benefits associated with heavy equipment leasing, it is fast becoming the preferred option.

Here are just a few of the benefits:

First of all, by opting for equipment leasing instead of buying it outright, you can free up enormous sums of money which would have otherwise gone into buying the equipment. Thus, heavy equipment leasing helps to increase the cash flow in your business.

Secondly, leasing is categorized as an operating expense for your business and may not fall into the same debt classification as do certain other types of loans. As a result, your balance sheet liability may be reduced and thus the asset-to-liability ratio of your business improves.

This in turn translates into stronger financial statements, which increases the borrowing capacity of your business. (Please don't take this as accounting advice. I am not an accountant, so be sure to consult a qualified accountant before making any financial or accounting decision.)

Finally, with equipment leasing, you have the option of getting a seasonal lease. Thus, if you have a seasonal business, where profits are greater at certain times of the year as opposed to others, you can opt to make higher lease payments at such times.

This reduces the financial burden on your business and ensures that repayment does not suffer.

With all of the benefits that leasing provides, it is no small wonder that its popularity is growing by leaps and bounds. Check into lease alternatives before you make your next equipment purchase. You may well be glad you did!

Timothy Anderson writes for CES-Equipment.com Read more Heavy Equipment Leasing articles [http://www.ces-equipment.com] at [http://www.ces-equipment.com]

Article Source: http://EzineArticles.com/expert/Timothy_Anderson/25751
http://EzineArticles.com/?Equipment-Leasing---A-Better-Financing-Alternative&id=137979

More Resources

Unable to open RSS Feed $XMLfilename with error HTTP ERROR: 404, exiting

More Leasing Information:

Related Articles

Ten Equipment Leasing Tips - Save a Bundle on Your Next Lease
According to the Equipment Leasing Association ("ELA"), U.S.
Ready to Sign that Lease Agreement?
Explores the advantages of signing a lease agreement.
Lease or Buy? That is Always the Question with Car Financing
Leasing is a perfectly viable and legitimate way to finance a new car. Although leasing offers attractive benefits, it is somewhat more complex than buying with a loan.
Ten Ways Start-ups Use Venture Leases And Loans To Generate Millions
The rise of venture leasing and lending has created an opportunity for sophisticated entrepreneurs to gain a competitive advantage. Savvy entrepreneurs are using venture leases and loans to generate millions of dollars for shareholders by leveraging existing venture capital.
With a Lease, The Devil Is In The Details
In the last article we looked at a few of the things you should consider before leasing that first office or storefront for your business. To recap, you should not only consider the old standard "location, location, location," but also consider things like sufficient parking, the number of employees who will be working onsite, and future growth projections.
Leases And Tenants - The Spooky Tenant
You, Mr. Landlord are pleased to find qualified tenants for your rental house.
True Tenant Tales, Volume One
Working with tenants can be an amazing experience. (Owners and contractors are equally astounding, but those are subjects for another day.
Smart Car Leasing for Beginners
Car leasing is extremely popular because it provides an attractive method of driving an automobile that you might not otherwise afford. It allows you to make lower monthly payments than with traditional car purchase loans.
Your Accountant Will Agree: Leasing a Car For Your Business is the Way To Go
One of the many important financial decisions of a business owner is whether to lease or purchase motor vehicles for the business. RK Auto Group recommends leasing for several reasons: Leasing strengthens your financial statement and upgrades your company's image by providing sharper-looking vehicles at a cheaper price.
The Lease And Purchase Option
If you have an investment property, should you rent it or sell it? The answer to that question is that you should do both. If you have lots of time on your hands and are handy with tools, you can choose to rent out your property.
Increase Your Business Growth and Cash Flow Through Equipment Leasing
"If it can be manufactured, it can be leased." For the past decade or so, this statement has become more and more true to fact.
Landlord Tips And Tricks
Every real estate investor dealing in rental homes has done his own clean-up and fix-up, at least in the early years. Landlords also become very skilled at managing tenants after being burned a few times.
Warning - This Lease Might Explode Any Minute
Mike Caringi, owner of a small New Jersey business that sells pumps, found himself facing a gut-wrenching dilemma last summer. Should he continue paying $ 1,500 each month for essential telecommunications services he no longer receives and for leased equipment he claims was never installed? Or, should he stop making payments and face a potential lawsuit from the firm that financed the equipment under a 'hell or high water' lease? Mr.
Getting Your Venture Lease Approved
Each year venture capitalists fund more than 2,500 start-up companies in the U.S.
So You Want to be a Landlord?
The residual income from owning rental properties may bring more money into your life than the fast flip in the long term. If nothing else, the stress is reduced because a well-chosen investment will pay for itself until you the market is ready for you to sell.
How To Choose An Equipment Leasing Company
Leasing has become a preferred form of equipment financing, accounting for more than 30% of business equipment acquisitions. Each year, thousands of U.
Equipment Leasing Blunders That Can Cost Your Firm a Mint
Rod McHenry, the financial vice president of a document imaging company, thought he had great cause for celebrating. He had signed an unbelievable $370,000 lease proposal covering computer servers, workstations, software and other networking equipment.
Dodging Leasings Grim Reaper: Navigating a Payment Default
In her third Harry Potter novel, ?The Prisoner of Azkaban?, J.K.
Pricing Your Apartments
How do you fix a price point for an apartment? Take a guess? Figure it based on your carrying costs? Check comps and do a market analysis? Charge whatever the market will bear? If you're looking to place quality tenants, less is sometimes more.We all want to make money with income property; the more the better! When you're looking for a new tenant, however, don't assume that you're going to make more money by charging more.
Interim Rent: Equipment Leasing's Trap Door
Many lessees enter into lease transactions that they believe are competitive based on faulty rate assumptions. Most lease rate calculations don't take interim rent into consideration.