New or Used: What Type of Equipment Leasing Is Right for You?

By Becky Neems| Oct 6, 2016| 2572 Views
New or Used: What Type of Equipment Leasing Is Right for You?

When getting ready to lease new equipment for your business, the lure of brand new equipment can be hard to resist, but is it really the best option long-term?  Often times, leasing used equipment makes better business sense.

Before you cave into the temptation and go with the new equipment, check out the benefits of leasing used:

Time Frame

Some equipment, though necessary for a successful business, just doesn’t get used very often. When leasing new, you may not see as high of a return on investment, especially if the equipment isn’t being used often. Leasing a well-maintained used piece of equipment helps you to see a profit sooner.  It doesn’t make much sense to spend exorbitant amounts of money on something that only comes in handy once in a while, especially when you have cheaper options.

Technical Advice

A steep learning curve isn’t uncommon with new equipment.  When leasing used, expert advice isn’t hard to find and is often free. Since the equipment has been around a little longer, more people have experience using it. From operation manuals to online forums, you won’t be left wondering how to operate your equipment.

An advisor talks to a business owner about leasing equipment.

Time in Business

While used equipment is a great choice for more experienced businesses, it is even better for start-ups. Getting a company up and running isn’t cheap, but choosing used equipment can help cut costs. It will keep overhead costs down and increase profitability.

Established businesses also benefit from leasing used equipment, especially if they are looking to expand. Breaking into new markets or simply serving more customers requires more equipment. Leasing used lets you expand without draining your funds.

Technology Change Frequency

Does it feel like every time you buy something new a bigger and better version comes out the next week? Leasing used equipment allows you to upgrade more often while keeping costs down. You’ll keep up with changing technology without draining your bank account.

Stay Trendy

Industry trends drive the market. Suddenly, your business is expected to offer another service to keep up with the competition. You don’t want to lose out on customers, so you need more equipment.  Sinking your savings into new equipment isn’t the best move. Leasing used allows you to see if the change is lucrative or just a passing fad.

Financing Opportunities

You may have heard that leasing used equipment can be a headache, but that isn’t necessarily true. Equipment financing companies are often able to come up with a plan to fit your needs.  Don’t turn down used equipment because you aren’t sure of the financing options. Instead, reach out to companies willing to be flexible and work with you.

Whether you use the equipment every day or once a year, chances are, leasing used equipment is going to save you money and allow you to expand without the high cost.   Though often overlooked, leasing used equipment can be the solution to your growing company’s needs.

Becky Neems

Becky Neems

As a marketing coordinator, Becky collaborated with Beacon Funding industry experts to write informative content about equipment financing that helps business owners in the commercial truck and decorated apparel industries.