How SMEs Benefit From Equipment Leasing?

Equipment leasing is a fantastic tool for businessmen with small or medium cap businesses.

Equipment leasing is another form of alternative funding in which a businessman receives funds for special equipment that is required for the growth of their business. However, this form of financing only focuses on the cash required for the equipment; not on the expenses that a businessman can incur in their business.

Moreover, this kind of financing differs from funder to funder with the range for funds can be anywhere between $25,000 and $2 million. The terms also differ with funders, making it necessary for the businessmen to go through all the terms and conditions thoroughly. Despite that, online alternative funding offers quite flexible terms. Funders like Mantis Funding are flexible in their approach and design their equipment leasing as per clients' requirements.

What are the advantages of opting for equipment leasing?

Needing expensive equipment and facing a liquidity crunch at the same time can be a tough situation. In such times, what will a businessman do? Will he stop the venture's growth, or will he look for options that can be beneficial for the future of the firm?

Of course, the second option makes more sense over the first one. Perhaps, equipment leasing at this point is the best solution for the firm. In this way, the businessman will not only keep the cost down but also will be able to get the equipment without tinkering the cash flow of the firm. What's more, is that the firm will be in the league of its competitors. Nevertheless, knowing the requirement before leasing on equipment could do wonders for a businessman's profits.

Apart from all this, as per Mantis Funding, the biggest advantage of equipment leasing is that a businessman will be able to plan the monthly payouts, for the equipment, which is kind of affordable in comparison to buying the equipment or financing it. Moreover, due to fixed financing rates, he will experience the transparency that he desires.

Tax benefits, conserving the capital and, getting access to the tool without even waiting for a long time are some of the benefits that equipment leasing can provide.

Things to consider before opting for equipment leasing 

Though there are many benefits of equipment leasing; one should remember that benefits can be reaped only when a businessman understands that leasing is entirely personal and unique depending upon the circumstances. 

Further, it is very crucial to partner with the right funder. It is also advisable for a businessman to go through the pages like Mantis Funding reviews to get a fair idea of how the firm operates. Also, having a clear understanding of leasing agreement and scrutinizing all the options before reaching any decision plays into the hands of the businessman. 

Whenever possible, always opt for a closed-end lease after deciding on the lease. Having a closed-end lease means that when the lease period is over, the businessman will hand back the equipment and will be free from all the repayment duties. 

Nonetheless, whether a businessman will opt for a closed-end lease or not is entirely up to the circumstances he/she is in. However, when opting for different open-end lease, make sure whether there is a clause for additional charges on the wear and tear of the equipment.

How your small business can benefit from equipment leasing?

Equipment leasing is a great tool for small business owners who wish to grow their businesses without burning their cash flows. Business equipment leasing is a form of alternative financing that is used for leasing special equipment needed for your business. However, it does not take care of other expenses that you may incur in your business.

Business equipment financing amount may vary from lender to lender; however, typically, it lies between $25,000 and $2 million. Different alternative lenders offer different leasing terms, so be sure to understand from your lender the repayment terms and other details. Usually, the terms of alternative online lenders such as Mantis Funding are flexible so you can negotiate according to your requirements.

Benefits of equipment leasing

If you're in a business that requires expensive equipment, but at the same time, you face a cash crunch, then equipment leasing can be the best solution for you. It helps to keep your cost down, does not interfere with the cash flow, and at the same time, you get what you need to keep your business competitive. However, consider your requirement before deciding on equipment leasing.

For example, if you're expanding your business and you're going to have a handful of employees who will need computers to work on, equipment leasing may make more sense. But, if you need just a single computer, it makes more sense to buy it than leasing out. Plus, the repayment of business equipment leasing is usually monthly or quarterly.

The biggest advantage of equipment leasing is the monthly payouts that are usually more affordable than buying or financing the equipment outright. The financing rate is usually fixed, unlike a floating rate in the traditional financing system. You get tax benefits, you get to conserve your working capital, and most important of all – you get access to your required tool almost immediately as the waiting period is negligible.

According to the Equipment Leasing Association of America, approximately 80 percent of U.S. companies lease some or all of their equipment, and there are thousands of equipment-leasing firms nationwide catering to that demand.

You need to keep in mind that your leasing decision is personal and unique to your given circumstances and business environment. Hence, it is important to partner with the right lender (Do check out Mantis Funding reviews to get a fair and balanced view of their financing ecosystem), you must also study the leasing agreement well and scrutinize all your options before you make a decision.

If you have decided to take a lease, opt for a closed-end lease, whenever possible. This means when the lease period is over, you can just hand over the equipment and walk away. But again, it entirely depends upon your business requirement. If you're going for an open-end lease, do remember to check if you need to pay any additional charges for wear and tear.

Mantis Funding offers cash advances of different sizes to help you take your business to the next level. And the best thing is their funding is not based on credit scores or collateral.