Depending on what kind of business you hope to start as an entrepreneur, you may be in need of equipment. Ovens for your restaurant, machinery for your oil company, or tractors for your farm… equipment is an essential part of running any small business. Entrepreneurs are often faced with the decision of whether to buy or lease their equipment. It’s generally far more common—and far wiser—to lease equipment than to buy it. Here’s why:
1. Easier Maintenance
If you buy your equipment, the maintenance costs and efforts all fall on you. You’ll need to fix any broken equipment yourself, or hire somebody to. Either way, when your equipment breaks down, you will face repair costs and headaches. However, when you lease equipment, maintenance is oftentimes covered in the cost of the lease, so things will be much easier for you in the event of your machinery malfunctioning.
2. Lower Costs
Technology is advancing at such an alarmingly fast pace that the machinery you spend so much money to buy will likely be obsolete or outdated in 5 or 6 years. Instead, keep up with technology by leasing your equipment, and switching it out for newer machinery when new ones become available.
3. Fixed Interest
Equipment loans often require only a fixed interest rate, which means that the interest amount should stay constant regardless of how long your lease term is.
4. Easy Return
If you want to sell or shut down your small business, it’s pretty easy for you to get rid of your equipment. The leasing company will simply pick it up from your company, with no added hassle on your part. If you buy the equipment, you’ll have to go through the process of selling everything, which costs both time and energy.
Biz2Credit can help you figure out the best path to take. Loan specialists can help you navigate through the array of options for equipment loans to pick the one most suitable to your business. Visit the website or call (877) 861-2210 for help.