Equipment leasing is a process that allows business owners to rent equipment from another company for a contracted period. Many San Francisco small business owners find this to be a cost-effective solution because of the many benefits they can realize from leasing instead of buying certain types of equipment they need to operate. When the lease contract is up, companies can decide to renew the agreement, return the equipment, or buy the equipment.
If your San Francisco-based company is considering lease options, here are some of the top benefits you’ll enjoy.
Equipment Leasing Leads to Increased financial flexibility
Purchasing equipment is costly, and not all businesses have that kind of disposable cash on hand. One option is to finance, but that means a good-sized down payment, along with monthly payments until the machinery is paid off. Partnering with a reliable leasing company enables businesses to have access to new equipment without the financial resources and burdens that come with purchasing. No more worries about raising enough capital to buy equipment. This is cash freed up for other essential expenditures.
Fixed monthly cost
When a company leases equipment, they establish a fixed tax-deductible cost. No more stresses about tracking complicated depreciation schedules or dealing with fluctuating interest rates. Instead, companies can plan for one fixed cost they can budget for each month.
Access to cutting edge tech
One of the significant benefits associated with equipment leases is access to the latest tech. When small businesses purchase tech, they often end up owning it for decades because repurchasing every couple of years isn’t practical. With tech progressing at a rapid pace, machinery quickly becomes outdated. Leasing companies typically rent out current models of equipment which helps make new tech affordable for small businesses. When the lease is up, businesses can opt to exchange their equipment for newer models regularly. No more running operations with obsolete or unsecured models. As a bonus, replacing equipment more frequently usually has a positive effect on productivity levels.
Equipment Leasing Leads to Better security
Speaking of security, today’s businesses must take protecting their data and proprietary information seriously. Many machines, such as copiers, serve as multi-purpose devices and primarily operate as standalone computers. Data flowing through equipment needs to be secured. Leasing ensures equipment is up-to-date and has the latest firmware updates or software patches applied through accompanying maintenance plans.
If your San Francisco-based business would like to learn more about equipment lease options, contact Golden Gate Office Solutions today for more information.