Office Equipment Financing
Many companies offer office equipment financing including choices between a variety of leasing options and purchasing plans. Anything from furniture to computers to heavy machinery can generally be purchased or leased. In addition, there are a number of services that many of these organizations offer to clients. Such services could include interior design, space planning, budgeting services, financing options, project programming, and furniture plans. The merchandise that is offered might be brand new or could also include used or refurbished items. There are also organizations that specialize in a certain style of furnishings such as vintage or contemporary. If an company is offering re manufactured items this could mean that furnishings have been reupholstered in fabrics that are not dated or that work surfaces have been upgraded to more contemporary materials such as acrylic, granite, or Plexiglas. Metal surfaces may have been repainted or may have received a new powder coat finish. For some organizations, leasing may be a better option than making an out right purchase. Some of the benefits of leasing might include conserving cash flow or preserving lines of credit. Leasing payments will tend to be lower than loan payments for out right purchases. Lower monthly payments may be necessary for start up companies that need to carefully budget available cash. Another benefit of this form of office equipment financing is that leasing will not generally have much of an impact on available credit which can be very important for many organizations.
When seeking office equipment financing, a business will usually need to come up with a sizable down payment if purchasing the equipment is seen as the best option. Obtaining a lease will not require a down payment and this can mean improved cash flow for businesses that choose this option. Of course, the business will not own the furnishings or equipment at the end of the lease and some companies may see this as a disadvantage. But if a limited budget is a problem, a leasing agreement may be a better fit. A leasing agreement may also not carry with it as many stipulations and restrictions as agreements that can accompany business loans. There may be certain tax benefits to leasing as well. Often, furnishings and other office equipment will not contribute much in the way of revenue. While these things are necessary, having a good deal of needed cash tied up in such furnishings may not make sound business sense. For this reason, many companies chooses leasing as an office equipment financing option. The cost of leasing can also include such expenses as design services, installation, freight. and shipping costs. Lease to own options can be helpful to new business ventures as well. There are many leasing agreements that will take into account the monthly cash flow situation that the client presents. Lease payment can then be adjusted according to the business's budget.
The types of items that can be obtained through office equipment financing can vary widely. The furniture and equipment that are available for lease or purchase can include cubicles, desks and chairs, computers and other hardware products, software, partitions, filing cabinets, conference tables, bookcases, work stations, servers, phone systems, fax machines, copiers, and any number of other items. Heavy machinery and specialty equipment may be available as well. In some cases, even company vehicles can be leased. Many organizations prefer to lease items that relate to current technologies. This may be due to the fact that technology can change very quickly. Investing a large amount of needed cash in items that might soon become obsolete due to new developments in technology does not make good fiscal sense. Choosing leasing as an office equipment financing option can make it much easier for businesses to keep up with technological changes. This can also be true of office phone systems. Dated communications systems can greatly handicap any organization. Having the option of quickly updating phone servers, voice mail programs, modular phones, PBX systems, and other communication technologies is important and choosing the right financing agreement for such vital components can be key to business success. Copiers can also change and improve rapidly due to new technological advances and having access to these developments can be very important.
Some companies may need to set up new facilities relatively quickly. There are organizations that specialize in these types of expedited projects. In most cases, office equipment financing can be set up to include the extra costs of speeding up the planning and moving process. Shipping and installation services will often be included as well. Such expedited services can help to take the worry out of getting a new business up and running quickly. The Bible has instructions for believers on how worry should be handled. Take therefore no thought for the morrow: for the morrow shall take thought for the things of itself. Sufficient unto the day is the evil thereof. (Matthew 6:34)
There are also many companies that offer office equipment financing for businesses with specialized needs. An example of such specialized needs are medical practices. Medical and laboratory equipment can be very expensive. Having the option to lease such items can help medical professionals get an office up and running without exhausting a large amount of needed capital. Specialized software products may be needed as well. When this is the case, leasing these items can make it much easier to keep up with the latest developments and improvements in computer technology. Business software that can meet the unique needs of a growing medical practice may also be available. What ever the need, there are generally organizations that can help business owners get a new venture off the ground.
Equipment Financing CompanyAn equipment financing company is often the only answer that a business owner or prospective entrepreneur has in getting the needed tools to make or keep an enterprise profitable. When a lender is spoken of as a company rather than a bank, it generally denotes lending practices that are a little more borrower friendly in terms of loan approval, but higher in terms of borrowed money cost than a traditional bank. Having said that, if an equipment finance lender is owned by the manufacturer, it may be inclined at times to offer terms even more friendly than a bank, particularly in more difficult economic times. So general statements can be made, but circumstances can trump them.
For the small enterprise owner, the lender for business tools will be keenly interested in his credit history and score. An owner's payment history for that pickup truck and the hot tub as well as how much personal credit card debt the owner has and how maxed out the accounts are will be scrutinized by an equipment financing company. Until a company is well underway and all financials are completely separate from the business owner, that first copier and computer system as well as the cement mixer will be contingent on that credit score belonging to the owner. Since that is true, the choice of leasing or buying, both options being offered by most financing companies, will hang in the balance by circumstances. Those circumstances will be company cash flow, type of equipment and that score.
In most cases, a business owner will want to lease his office gear. If the owner has a lower credit score, leasing both the office stuff and the cement mixer may be the only option. Leasing is more widely available for lower personal credit scores or more spotty company financials. The equipment financing company will go through all of the pros and cons of leasing and buying the office gear, but leasing almost always wins out when comes to technology tools. The light year speed at which technology advances, making most tech gear obsolete within eighteen to twenty four months, makes leasing the copier and computer a given. And electronics have a relatively short life span, making the idea of renting the equipment for a time span and the getting new stuff a better option.
The most attractive part of leasing office equipment or any commercial equipment is the tax deductible nature of the lease. In most cases, the gear is all tax deductible, but a tax advisor should be sought to confirm all tax preparation decisions. So along with a stronger chance of getting a lease than a loan, the equipment financing company can also show the business owner how the man can stay on top of office technology advances with a three or four year lease. Jesus has always been clear in His message to people: a person either walks in the light he provides, or in darkness, which most people choose. "...I am the light of the world: he that followeth me shall not walk in darkness, but shall have the light of life." (John 8:12)
So in a weak financial position, the business owner would choose the leasing of the office equipment through the equipment financing company. But what about that big honkin' cement mixer that the man needs for his home improvement company? Fourteen thousand dollars and will last about twenty years if maintained correctly. The owner may be stuck leasing the thing with his bad personal credit, but that's probably not a good move for something that can last so long. After all, the owner leases it for three years and has to start over again leasing or the man can start buying it, but had the mixer been purchased from the beginning the owner would be halfway home to paying for the machinery. He can lease the thing and hope a model comes out where the mixer fills itself, mixes by itself and flies to the customer on its own. Since that won't happen at the end of the current lease in three years, getting a new one at that time is really no deal at all from the financing company.
But if the owner is working from a position of financial strength, he will still probably lease the electronic office equipment. Paper cutter, big tricked out stapler, desks, chairs and reception room furniture will probably all be purchased. Again, the owner's financial advisor will want to confirm the wisdom of that move. The equipment financing company can provide a purchase loan for as much of those interior needs as the owner has. But that big noisy cement mixer is still the issue. In a position of strength and the long life expectancy of the mixer known, the sales person at the equipment financing company will probably recommend that the owner purchase the mixer rather than leasing it.
Purchasing business machinery does not provide the same tax benefits as the lease option does. The equipment financing company will show the business owner that he will be able to deduct some depreciation on the equipment based on a pre determined tax schedule. It will not come close to matching the full payment deduction from the lease. But the financial numbers in his situation will show that buying the mixer outright actually saves money in the long run. A financing company should be ready to help either with leasing or purchase, but they may have some vested interest in favoring one over the other. Seek a trusted advisor with no conflict of interest to help decide what is best for your business situation.