Equipment lease financing is any day a more feasible option than investing huge amount of funds in heavy machinery and equipment. Trucks, Tractors, computers, fax machines and all types of equipment required for running an industry or enterprise is available on lease. This concept removes the capital necessary to start a enterprise.
Equipment lease financing requires the borrower to pay a specified amount every month to the manufacturer, dealer or lender whoever is web-sites the leased equipment. Depending upon the nature of your business, you will be required to upgrade your equipment once in a while. This is particularly important with computers and software. Some lease agreements have a clause for such up gradation so there is no question of working with obsolete machinery for want of funds.
Moreover, the money spent on such lease can usually be treated as tax deductible enterprise expenditure. Many vendors and banks specialize in equipment lease financing. In fact obtaining an equipment lease is easier than getting a loan. The mandatory checks on creditworthiness of the borrower etc are done but are more relaxed. A new business will find it easier to obtain a lease from a vendor than a bank.
Try to buy a lengthy lease period for anybody who is short of funds because the monthly rent will come down accordingly. An upfront payment is required which you might want to check in advance to see if it may be reduced to some extent.
Is it possible to terminate the lease prematurely? Sometimes a pre closure fee will be taken from the borrower. Additionally, there are options like a cancellation clause which you can look into.
You can also try to purchase the equipment from the lender at the end of the lease term for a set price or at a fair market value.
You can search equipment lease financing if you find yourself short on funds and choose to invest more on heavy equipments.