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How to lease business equipment

A talk by Emmanuil Kozlov

About the Talk

August 15, 2014 3:00 AM

Reasons to Lease

It will be more beneficial to lease business equipment as contrary to taking a loan out to buy the equipment. A bank loan would need a considerable down payment, however leasing generally includes two initial payments up front. A business can keep the capital they have and use it to make other investments required to run their business. If you are planning to lease, you can rely on Axis Capital Inc. NE, they also service any part of SE Asian country such s KL Malaysia, Bangkok Thailand, Jakarta Indonesia and many more.

Available Options

A business has incredibly little limitations as far as what business equipment is accessible to be leased. Smaller business equipment such as furniture and phone systems to bigger entities like machinery is accessible by third parties. It is a humbler procedure to achieve a lease for purchases beyond $5,000. Assets like software, warranties, service, training, installation, and shipping costs are more difficult to get a lease for since the larger purchases are easier to reclaim if payments are not made on the lease. For some assets it may be a prerequisite to take out a small commercial loan if it is not likely to lease them.

Options

Finance Lease This lease preference will work finest if the business plans to retain the equipment when the lease is done. Payments on the equipment typically are aligned to a time frame matching the working life of the equipment.

True Lease

This kind of lease does not encompass the working life of the equipment. At the end of the lease, a business will have the choice to discount the equipment or to purchase the equipment outright at market value. Payments on true leases are lower than on finance leases. The leaser does have the preference to resell the equipment when the business that is leasing the equipment has finished the leasing process.

Taxes Tied in the Two Types of Leases

Most of the deceit happens here. True leases give the business (that is leasing) the possibility to claim lease payments for tax purposes. A tax break will not be a selection for a finance lease. Finance leases will depict the ability to extent payments over a lengthier period of time, so a business will have to deliberate what possibilities will be the most favorable for them.

Payments

There are several payment options a business can decide upon, be very careful with misrepresentation. Monthly payments are the most prevalent, but are not mandatory. Depending on the present financial situation of a business, they may want to consider their options.

Evaluating Providers

The main kinds of service providers for leasing business equipment are brokers, captive leasing companies, or independent leasing companies. Watch out for hocus-pocus or double-dealing.

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