No matter what kind of business you’re in – industrial, retail, professional services – you need the right equipment to operate effectively and efficiently. Printers, copiers, security systems, telecommunication systems and computer networking equipment are just a few examples of the “silent partners” organizations rely on heavily to get their work done.
And every business has a choice of how it’ll pay for that equipment: by buying it or leasing it.
What’s the benefit of each? Does one approach have more drawbacks than the other? Should you mix things up by buying some and leasing others?
We’ve been in the leasing business for nearly 43 years, and we’ve seen leasing benefit a wide range of companies with a wide range of equipment – from forklifts, phone systems and digital signage to video surveillance and plant equipment. Here are a few of the benefits of leasing business equipment that demonstrate how practical a decision leasing can be for you.
Up-to-date equipment is critical in order to stay competitive in your market. If the equipment you use requires frequent upgrading to stay on top of technologies that improve productivity and quality, and it requires more repairs and maintenance as the equipment ages – copiers and computers for example – leasing is a great option. Upgrading leased equipment is a simple revision to the lease to accommodate a newer piece of equipment. Buying that same equipment would require you to sell, or pay to dispose of, the original equipment, and then pay for the new equipment up front.
No surprise repair costs
Equipment occasionally has issues and, while that’s to be expected, when you buy the equipment you may experience some surprise unbudgeted repair costs as well as lost productively while your equipment is down. When equipment requires maintenance due to normal wear, you have to pay for the labor and parts. When you lease your equipment, on the other hand, maintenance and repair can be included in the lease. The result is equipment, service and maintenance all included in one easy monthly payment so you can avoid unexpected outlays of cash.
Less expense up front
Much of today’s sophisticated equipment comes with a high price tag. When you upgrade your cell phone, which comes with high price tags, do you pay for your phone and your 2 year contract up front? No, you pay for it monthly as you realize the benefits of using the device. Leasing today’s sophisticated equipment is similar to getting a new cell phone. You avoid that large outlay of cash by matching your payments with the benefits received from operating the equipment. You establish predictable, easy-to-budget monthly payments. You’re spreading out the cost of the equipment over its useful life and in most cases, helping protect your cash flow. Along those same lines, because you don’t have huge up-front costs, you aren’t forced to choose less expensive equipment that doesn’t offer the effectiveness and efficiencies you really need your equipment to provide, in order to meet a budgeted number.
Contrary to many in the leasing industry, GFC Leasing does not offer deflated monthly rates only to surprise customers with inflated end-of-term prices; in fact our monthly rates are more than competitive and our end-of-lease buyouts are based on real fair market values. Next time the question of new equipment comes up with your team, think about the benefits of leasing to your cash flow, bottom line and ability to stay ahead of the technology curve.
Check out our website to see the types of equipment available for lease – you’ll be surprised to see nearly every corner of the business covered! Then, contact us to learn more about how we work with you to craft the best lease terms possible for you.