If you don’t ask, you don’t get. Don’t miss out on a cost-effective, beneficial investment solution.
It’s widely known that investing in equipment is vital to a functioning business. For example, if we didn’t have phones we would struggle to communicate with our customers and if we didn’t have computers we’d be doing things the good old fashioned way – with a pen and paper.
There are multiple ways in which companies can invest in equipment, the most common methods being cash purchase, obtaining a bank loan and extending an overdraft. Although these investment methods enable businesses to purchase the equipment outright, the company is at more financial risk. Many companies will have used the bank for other investments so the risk here is over exposure of existing funding lines and many companies, especially new starts, need to keep cash flow within the business. Due to these risks it is common that businesses either decide not to invest in the equipment needed or they settle for the cheaper, second-best model.
There is a simple question companies could ask equipment suppliers when looking to invest, a question that is rarely asked: “Do you offer a leasing option on this equipment?” Leasing is a low-risk investment method which enables companies to keep cash within the business, protects existing credit lines, attracts tax advantages and provides many benefits.
Mike Francis, head of Asset Finance at Investec, acknowledged that “if it is equipment or vehicle assets the SME is after, asset finance should be the answer, but often the question is not asked.” (Leasing World, 2015).
Don’t fear it, embrace it
If a business has never leased equipment before the fear of the unknown often takes over. Leasing isn’t complicated; in fact it’s really easy if you have the right support behind you. Neglecting this question has become a trend in the business world; make a change by asking for the option to lease. Embrace the fact that there’s another option out there which will benefit your business greatly and make a change by asking the ‘neglected question’ when investing in equipment.
Leasing case study & resources
To see an example of how leasing has benefited others simply see the case study below.
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