PureVolume

 
Next »
 
 

Rental Compensated Equipment Financing

blog post
The advantage associated with this system is, the firm or person can buy those leased items after completion of the lease period for fair price or else items can be returned. There is a possibility to continue the lease contract. The system can be useful to anyone. The businesses can make use of this system for all inventory purposes. The startups can boost their company without spending much revenue on fixed assets. The system is usually defined as business equipment leasing.

Equipment financing is done by the leasing company on behalf of small businesses which leases those purchased equipments and generates income for the leasing company. There is no shortage of money in this field because many billionaires are finding this as a good return producing industry. Investing is done by these people to buy needed equipments and the leasing company manages the business of leasing and collects money and returns a fair slice to these investors. At this point of the business, leasing companies, investors and industries which took the lease are happy. It can be defined as the win-win situation for all the active and passive participants of the business. Equipment finance finds its unlimited supply to the industry because of better returns compared to all other similar industries. The concept is innovative and every innovative idea produces a significant amount of money in its early life and younger life.

Lease equipment financing is little more expensive compared to the bank financing but it is easy to get financed in the lease. Banks are hard to go through and new companies keep on struggling. With great returns to the investors, the system is providing new hopes for the development of small scale industries and businesses. As described, the system is well suitable for small scale industries and businesses, small ticket leases with capital of $100000 or less. The system provides credit facility based on founder’s personal guarantee and the owner of the firm can pay monthly rent. If the firm buys the required equipments, it has to afford the price of equipments and the other expenses also follows such as installation and training. This is simplified because of the equipment leasing services.

The firm can easily acquire the lease if the lease amount is around $100,000, it is as easy as getting a credit card. If the lease amount is more than $100,000 the more detailed credit analyses is done by the company. The process of leasing the equipment is easy and follows some steps as mentioned here. The process begins with finding the company to lease the equipments needed. This is not a big deal to find a suitable and cost effective company. Very leasing firm is equipped with all equipments one new company must have. It is important to know, all equipment selling companies is not a leasing company. Almost what a selling company can do for you is directing you towards the leasing company at which they sell their equipment. Anyhow this referral system is also a business strategy to help both equipment sellers and leasers to make profit.

It is better to get the quote of the equipments to be leased from the selling company referral leasers. This quote becomes competitive. discover this

 

Posted Nov 14, 2012 at 7:11pm

0 likes

 

Comments

 
 
1