Leasing is becoming increasingly popular among businesses, because it does not eat into your capital. Instead, you simply pay for the assets you need — usually capital equipment — monthly and then return it to the original vendor when you’ve finished with it. What’s more, leasing can help your business to grow fast if you’re trying to get to scale. Here’s why:
Leasing keeps your budget under control
Leasing is a financing option you can use to only pay for the services you get from equipment. In that respect, it’s akin to renting where you pay for the space, not the asset.
Leasing keeps your budget under control by avoiding paying out capital upfront. You simply pay a monthly fee and then, if the equipment you purchase no longer serves you, you simply hand it back to the leaser.
Leasing improves your margins
If you are a company that sells products to the public, leasing is a good way to boost your margins. When you offer a leasing option, customers are more likely to buy from you. Evidence suggests that it can increase your margins by perhaps 25 per cent or more.
Leasing improves your liquidity
Many businesses have limited capital. There’s only so much money they can dedicate to new projects. They need to make savings where possible.
Equipment leasing allows this to happen. When you lease equipment directly, you get the assets you need upfront without eating into your cash reserve. Or, if you offer to lease to customers, you get all of the money for the products upfront from the finance company. The customer then pays in instalments.
Leasing improves customer loyalty
Leasing also encourages customers to continue to return to you time after time. Many products have a limited service life, so leasing may improve engagement and lead to tighter inventory.
Leasing is now the new standard
Lastly, leasing is fast becoming the new standard, no matter what industry you operate in. By leasing, you can spread the payments for the assets and equipment that you use, making your cash flow more predictable.
How leasing can help your business grow
Leasing is a very cost-effective way to invest in business equipment. In addition to its many benefits this option competes very well in simple monetary terms. Visit our Lease vs Buy page to see some examples of how you can save money by leasing. Or get in touch to discuss how we can help you grow your business by leasing assets instead of buying.