More Cash Flow with Equipment Leasing

By: Ryan Attelle

Equipment leasing, often known as equipment leasing financing, is one of the fastest growing cash flow solutions for small to midsized businesses in our current economy. Many companies specializing in creative financing solutions know that equipment leasing is one of the most effective ways to preserve the cash flow for any business.
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Many businesses are experiencing that restrictive bank financing is leaving them with their hands tied. The fact is very strict bank credit approval is just the way it is today, it is nearly unavoidable. It has never been harder to get the financing businesses need for equipment that through a traditional bank. A lot of this headache and heartache has to do with the increase in requirements, restrictions, and paperwork, not to mention the longer approval time.

Even if bank financing is available, it might be wise to think twice before tying up need cash with financing from a bank. Bank financing often requires a down payment which can, for many, be considered excessive. When money is tied up it hinders the extra flexibility a business has. As a result a business may find it self postponing the purchase of much needed equipment, due mostly to a lack of capital. In many cases this can damage a businesses ability to grow. This could also result in missing out on great opportunities like expansions, increased market shares, even cash deals. On top of all this the increased debt will be indicated on financial statements. This can jeopardize future credit applications. Traditional bank financing doesn't even provide the great tax advantages that are offered though equipment leasing. using the equipment when ever they want with out the all of the responsibility that comes with ownership. It is also a very attractive options for businesses with only limited resources. Instead of having to pay everything all at once they can pay a little at a time for new equipment. This helps make even seemingly impossible goals much more attainable.

Everyone knows the term “Cash Is King”. This holds true on so many levels. It is important to maintain a good amount of it so that a business is sure to maintain its need flexibility in the current economy. When the right equipment leasing company is chosen a business can preserve much of it's cash maintaining this all important flexibility.

A few things to know about equipment leasing. The rates are in general very low. In addition to that in most cases there is no extra money needed for equipment leases that reach $150,000. Also the application process for equipment leasing tends to be far more accessible, easy, and quick.

When looking at a businesses growth it is important to consider financing and the flexibility leasing equipment can provide. Cash is preserved rather than being all tied up. So that it is available when ever the business needs it.