One of the major risk factors when starting up a business is uncertainty over the market. Even with research, planning and testing, the market still has the capacity to throw up some unpleasant surprises: an over-supply; a change in the economy; seasonal or cyclical demand; issues with costings and a range of other variables can all mean that without rapid adaptation, your business could fail. If you need to keep your business responsive, flexibility is absolutely crucial. Regardless of the nature of your industry, equipment leasing can play a key role in helping you maintain the ability to respond quickly to changing circumstances.
Upgrade or downgrade as you wish
Got a product line that’s selling well? Leasing allows you to easily upgrade your machinery to keep up with the latest technology. Alternatively, if you’re creating something that’s simply not shifting, you can return the machinery you’re using as soon as the lease is over – this saves not only the difficulty of getting shot of unwanted equipment (almost always at a loss, unfortunately), it also means you haven’t lost valuable cash on an asset, only to see it rendered useless by market fluctuations.
Why not alter what you do?
If you find that one form of your product isn’t working, why not try another? Leasing gives you the option to acquire a wide range of machinery and equipment, enabling you to branch out in fresh, exciting directions without a huge amount of capital outlay.
Save on storage space, maintenance and more
If you’ve got an asset you no longer need, you still have to keep it in good condition and it still takes up space until you can get shot of it. This all costs money, meaning the money you spend on a piece of equipment that’s become a liability rather than a necessary means of production. When you lease, once the term of the lease has expired, the equipment goes back to the leasing company and you’re free of it – no hassle or additional costs. In some circumstances you may also have the option to purchase the equipment also.
For these reasons and many more, leasing & asset finance is often the best option for smaller businesses that are in the process of finding and establishing their niche.
Flexible leasing – where to find out more
If you’d like to discuss flexible ways of leasing equipment for your business, please get in touch today.