Expanding your young business with new equipment is exciting.
You may be asking: Do I spend my hard-earned cash with an upfront equipment purchase, or is there a smarter, more financial-savvy option?
While paying the total cost of equipment in cash may seem tempting, its impact on your business growth can be substantial, especially when you need to utilize capital for other areas in your enterprise.
Fortunately, there’s a better alternative to spending your cash. In this article, view a comparison between lease-to-own versus buying equipment outright with cash to discover which option aligns with your business objectives.
In this article…
- Meet Your Business’s Unique Challenges
- Lease-to-Own – Your Solution To Cost Effective Growth and Equipment Ownership in 2024
- Deciding Between Leasing and Paying Cash: What’s Better for Your Business?
- Start Working with a Lease-to-Own Lender Today
Meet Your Business’s Unique Challenges with Lease-to-Own
Let’s start by talking about how to achieve success in your industry. Every industry requires a specific equipment model to expand your operations.
- Landscapers, considering a skid steer for your next contract? It’s not just another piece of equipment– it’s your efficiency booster, tackling those labor shortages like a pro.
- Towers, you know what can rev up your game? Growing your fleet and expanding your towing radius. It’s not just about answering more customer calls – it’s expanding your business territory.
- Embroidery and screen printing champs: Getting your hands on top-notch equipment means quicker turnarounds and more happy customers.
Lease-to-Own – Your Solution To Cost Effective Growth and Equipment Ownership in 2024
When you have equipment added to your company, you can quickly maneuver through specific challenges. Leasing equipment paves the way for your business to incorporate the latest equipment models so you can adapt and deal with its present and future needs head-on.
Lease-to-own is also a cost-effective way towards equipment ownership. Rather than returning the equipment when the agreement ends, you keep it, and ownership is transferred to you from the lender.
You make your monthly payments and once you reach the end of the lease, you pay the final balance. Ownership is then transferred to you, and you can do what you please with your equipment.
Most Popular Buyout Options
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- The lessee pays the lender $1 at the conclusion of the lease term.
- Ownership (or the title) is transferred from the lender to the lessee.
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- The lessee pays the lender 10% of the original purchase price of the machine.
- Ownership (or the title) is transferred from the lender to the lessee.
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The equipment is yours and you no longer make payments—no more paying to use the equipment or worrying about extending your lease contract. You are also entitled to write off 100% of the lease payment when you buy it.
Deciding Between Leasing Equipment and Paying Cash: What’s Better for Your Business?
So, you’re at the crossroads of deciding how to gear up your business – to lease or to pay cash? Let’s break it down.
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Lease-to-Own |
Paying Cash |
| Upfront Costs |
Well-qualified buyers can qualify for $0 down. Putting money down also lowers your monthly payments. |
Purchasing equipment outright often requires a substantial upfront investment, which may strain your business’s finances. |
| Cash Flow Management |
Low monthly payments help spread out your costs and keep more cash on hand. |
Paying cash may deplete cash reserves, affecting your business’s ability to handle other expenses or investments. It can require a lot of time to save up enough cash. |
| Business Credit |
Helps you build up your business credit to help you qualify for larger lines of credit later. |
Does not establish or build up your business credit. |
| Ownership vs. Usage |
$1 buyout or 10% of purchase price |
Paying cash provides full control and asset ownership from day one. |
| Equipment Lifespan and Technology Changes |
Beacon Funding’s equipment upgrade program enables your business to upgrade to newer equipment even before your term ends. This allows you to stay current with technology when you need it. |
You may be stuck with older technology unless you make new purchases. |
Finding the Right Lease-to-Own Solution
When it comes to expanding your business with new equipment, choosing the right lease-to-own equipment solution is an important first step that can impact your long-term success. To ensure you make an informed decision, consider the following:
- Understand Your Business Needs. Before exploring lease-to-own, assess your business’s unique requirements. Identify the equipment you need for growth and efficiency.
- Lender Reputation Matters. Choose your lease-to-own partner wisely. Establish strong relationships with a reputable lease-to-own lender like Beacon Funding. Seek lenders who understand your industry, offer excellent customer support, and provide end-of-your-lease buyout options tailored to your business needs.
- Financial Planning and Budgeting. Integrate lease-to-own into your financial planning. Work closely with your financial team to understand the impact of lease payments on your budget. Consider potential tax benefits, increased productivity, and overall contributions to your business growth.
- Stay Informed About Industry Trends. Keep an eye on industry trends. Leasing allows you to adapt to changes by upgrading equipment as needed. Staying informed ensures your business remains competitive and can quickly respond to evolving market conditions.
- Seeking Professional Advice. Navigating lease-to-own complexities may benefit from professional advice. Consult with Beacon Funding to gain insight into best strategies for your specific business circumstances.
Start Working with a Lease-to-Own Lender Today
Now that you know how easy and beneficial it can be to get the equipment your business needs through lease-to-own, you’re probably wondering how to get started. The step is to apply for a lease-to-own plan – you can do this before you find the exact piece of equipment you want.
GET STARTED NOW
Take the first step towards growth and success by consulting with Beacon Funding today. At Beacon Funding, your success is our #1 priority.