Equipment Leasing - A Better Financing Alternative

 


Visitors: 638

In today's highly competitive markets, where managing finances is a major concern for most businesses, equipment leasing comes as a valuable financing alternative. In the past, businesses often chose to purchase equipment as and when required for their growth. However, this had the effect of tying up capital and limiting expansion. However due to the tremendous benefits associated with heavy equipment leasing, it is fast becoming the preferred option.

Here are just a few of the benefits:

First of all, by opting for equipment leasing instead of buying it outright, you can free up enormous sums of money which would have otherwise gone into buying the equipment. Thus, heavy equipment leasing helps to increase the cash flow in your business.

Secondly, leasing is categorized as an operating expense for your business and may not fall into the same debt classification as do certain other types of loans. As a result, your balance sheet liability may be reduced and thus the asset-to-liability ratio of your business improves.

This in turn translates into stronger financial statements, which increases the borrowing capacity of your business. (Please don't take this as accounting advice. I am not an accountant, so be sure to consult a qualified accountant before making any financial or accounting decision. )

Finally, with equipment leasing, you have the option of getting a seasonal lease. Thus, if you have a seasonal business, where profits are greater at certain times of the year as opposed to others, you can opt to make higher lease payments at such times.

This reduces the financial burden on your business and ensures that repayment does not suffer.

With all of the benefits that leasing provides, it is no small wonder that its popularity is growing by leaps and bounds. Check into lease alternatives before you make your next equipment purchase. You may well be glad you did!

Timothy Anderson writes for CES-Equipment.com Read more Heavy Equipment Leasing articles at http://www.CES-Equipment.com

(344)

Article Source:


 
Rate this Article: 
 
Everything You Need To Know About Construction Equipment Leasing...And How To ..
Rated 4 / 5
based on 5 votes
ArticleSlash

Related Articles:

Leasing Equipment: An Option for Small Business Financing

by: Mary Wise (July 05, 2006) 
(Finance/Leases Leasing)

Medical Billing Services,Medical Equipment Financing and Leasing

by: Colin Haley (August 16, 2010) 
(Health and Fitness/Medicine)

Asset Based Financing, Alternative Ways of Financing, Large Commercial Real ..

by: Karna Hoskote (June 22, 2008) 
(Finance/Commercial Loans)

Leasing Or Financing - Which Option is Right For You?

by: Rachel Jonas (December 10, 2008) 
(Automotive)

Car Loan Financing - Buying vs. Leasing

by: Carrie Reeder (May 09, 2006) 
(Finance/Leases Leasing)

Venture Leasing: Startup Financing On the Rise

by: George Parker (December 21, 2004) 
(Finance/Leases Leasing)

Equipment Leasing: Should You?

by: Leon Chaddock (November 08, 2005) 
(Finance/Leases Leasing)

Benefits of Leasing Equipment

by: Gil Vidals (April 28, 2006) 
(Finance/Leases Leasing)

Advantages of Equipment Leasing

by: Colleen Barrett (July 04, 2008) 
(Finance/Leases Leasing)

Everything You Need To Know About Construction Equipment Leasing...And How To ..

by: Con Quimper (December 04, 2005) 
(Finance/Leases Leasing)