There are lots of different reasons as to why you may want to choose to finance your material handling equipment. For most, it is simply a case of the equipment being far too expensive to purchase outright. Let’s take a look at the 20 key benefits of the best material handling equipment financing options.
20 Reasons to Choose the Best Material Handling Equipment Financing Options
- You pay as you use the equipment, which means it gives you far more value.
- You get fixed payments, so you can budget appropriately.
- You can lower the payments by taking on a longer lease term, thereby having greater control over your expenditures.
- You get obsolescence protection, which means you can upgrade your equipment in the last year of your lease contract.
- You don’t have to make a down payment, so you have more disposable income.
- You can finance 100%, rather than having to save up for a deposit.
- It is quick and easy to get the equipment you need.
- It is flexible and creative, as lease companies aren’t bound by any banking acts.
- You can decide to but your equipment at the end of the term, or hand it in and replace it with a newer model,
- It helps you to conserve more working capital because your expenditures are much lower.
- It simplifies your forecasting calculations, as you have a clear expense on your income statement that is pre-determined and fixed.
- You can add your lease to your operating budget rather than your capital budget, which makes it much easier and quicker to manage.
- It provides certain tax benefits because it is classed as an expense.
- There are programs with no or very low interest.
- You can sign up to a master lease agreement, which means that your line of credit for the lease is approved for life, and always at least to that amount. This means that any future leases only require a signature, rather than many different checks.
- Your bank credit lines remain preserved, as a lease is completely separate.
- You hedge yourself against inflation, with incremental cost payments.
- It gives you a competitive edge, because you can always operate with the most up to date equipment out there.
- You have the option to sign up to a sale & leaseback arrangement, which means that leasing companies can purchase equipment from you and then lease it back to you. This works if you have depreciated assets.
- It enhances your corporate image, again because you have the most up to date equipment available.
These are 20 key benefits of leasing your equipment instead of purchasing it. As you can see, for most businesses, opting to lease is by far the best option. It ensures more capital is available for the important things such as running a business and making profits, rather than spending everything on equipment.